FY 2011 Adopted Operating Budget

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					FY 2011 Adopted Operating Budget

          PHYLLIS MARCUCCIO, MAYOR
       JOHN B.BRITTON, COUNCILMEMBER
       PIOTR GAJEWSKI, COUNCILMEMBER
   BRIDGET DONNELL NEWTON, COUNCILMEMBER
       MARK PIERZCHALA, COUNCILMEMBER

           Scott Ullery, City Manager

     Prepared by the Department of Finance
                Division of Budget
       Gavin Cohen, Chief Financial Officer
    Stacey Tate, Budget and Finance Manager
Mary Sue Martin, Management and Budget Analyst
Erica Tompkins, Management and Budget Analyst
                      and the
           Staff of the City of Rockville




         CITY OF ROCKVILLE, MARYLAND
                   JULY 2010
                                                           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.
Each City department contributed additional time and effort to the budget development this year in order to present new information at a higher level of
detail. The individuals listed below played an integral part in the preparation of this document.

                            Budget Preparation
            Colette Anthony, Human Resources Administrator                                       Michael Wilhelm, Chief of Contract Management
               Sheldon Altshuler, Safety and Risk Manager                                            Jason Zimmerman, Revenue Supervisor
               Charles Baker, Chief of Inspection Services                                     Nancy M. Zombolas, Graphics and Printing Supervisor
                  Hillary Boguski, Wellness Coordinator
    Doug Breisch, Telecommunications and IT Operations Manager
           Mark Charles, Chief of Environmental Management                                                       Management Team
                 Whitney Coleman, CPDS Administrator
                                                                                                       Marylou Berg, Communication Manager
                  Judy Ding, Deputy Director of Utilities
                                                                                                    Michael Q. Cannon, Chief Information Officer
         Ed Duffy, Community Development Program Manager
                                                                                                        Gavin Cohen, Chief Financial Officer
        Emad Elshafei, P.E., Chief of Traffic and Transportation
                                                                                                             Debra Daniel, City Attorney
     Michael W. England, Special Operations Bureau Commander
                                                                                           Michelle Poche Flaherty, Organizational Development Manager
             Raymond D. Evans, Golf Course Superintendent
                                                                                                     Claire F. Funkhouser, City Clerk/Treasurer
                 Eric Ferrell, Copy Center/Mail Specialist
                                                                                                   Burton R. Hall, Director of Recreation and Parks
              Susan E. Fournier, Public Works Administrator
                                                                                                      Jennifer Kimball, Assistant City Manager
                   Jennifer Frank, Accounting Manager
                                                                                                  Craig L. Simoneau, P.E., Director of Public Works
   Christine M. Henry, Recreation and Parks Administration Manager
                                                                                           Susan Swift, Director of Community Planning and Development
             Mary Lou Jacobs, Community Services Manager
                                                                                                        Terrance N. Treschuk, Chief of Police
            Angela Joyner, Telecommunications Administrator
                                                                                                   Carlos Vargas, Chief Human Resources Officer
    David Levy, Chief of Long Range Planning and Redevelopment
         Steve E. Mader, Superintendent of Parks and Facilities
    Timothy J. Marsh, Administrative Services Bureau Commander
                       Eileen Morris, Contract Officer
               Timothy Peifer, Financial Systems Manager
       Robert J. Rappoport, Field Services Bureau Commander
          Steve Sokol, Operations Maintenance Superintendent
                Susan Straus, P.E., Chief of Engineering
             Pat Stroud, Vehicle Maintenance Fleet Manager
            Betsy C. Thompson, Superintendent of Recreation
           Tammy Jo Tucker, Human Resources Administrator
                      Jim Wasilak, Chief of Planning
                    Marc Weinshenker, GIS Manager

Any individual with disabilities who would like to receive the information in this publication in another form (e.g., large print, Braille, tape, etc.) may contact
the City's Americans with Disabilities Act Coordinator at (240) 314-8100; TTY (240) 314-8137. For additional information about the City of Rockville,
please see our website (www.rockvillemd.gov).
                                                                                            Table of Contents
Preface                                                                                                                   Fines and Forfeitures .......................................................................... 3-9
                                                                                                                          Use of Money and Property................................................................. 3-9
Acknowledgements .........................................................................................i
                                                                                                                          Other Revenue / Administrative Charges............................................ 3-9
Management Team .........................................................................................i
                                                                                                                      Enterprise Funds:
Table of Contents...........................................................................................ii
                                                                                                                          Water Fund ....................................................................................... 3-10
Introduction to the Budget Document.............................................................v
                                                                                                                               Revenues and Expenses [Graph] .............................................. 3-11
Budget Ordinance .........................................................................................vi
                                                                                                                               Water Rate History [Graph]........................................................ 3-11
Changes from FY 2011 Proposed to Adopted Budget................................ viii
                                                                                                                          Sewer Fund....................................................................................... 3-12
Community Profile..........................................................................................x
                                                                                                                               Revenues and Expenses [Graph] .............................................. 3-13
Demographic Statistics ................................................................................ xii
                                                                                                                               Sewer Rate History [Graph] ....................................................... 3-13
                                                                                                                          Refuse Fund...................................................................................... 3-14
Overview and Summary Information
                                                                                                                               Revenues and Expenses [Graph] .............................................. 3-14
1 - Executive Summary                                                                                                     Stormwater Management Fund......................................................... 3-15
City Manager’s Budget Message, July 1, 2010 .......................................... 1-1                                     Revenues and Expenses [Graph] .............................................. 3-15
Full Time Equivalent (FTE) Positions....................................................... 1-11                          Parking Fund..................................................................................... 3-16
Budget Development Process.................................................................. 1-14                              Revenues and Expenses [Graph] .............................................. 3-17
                                                                                                                          RedGate Golf Course Fund .............................................................. 3-18
2 - Policies and Goals
                                                                                                                               Revenues and Expenses [Graph] .............................................. 3-18
Mayor and Council Vision 2020 ................................................................. 2-1
                                                                                                                      Special Revenue Funds:
Financial Management Policies ................................................................. 2-4
                                                                                                                          Special Activities Fund ...................................................................... 3-19
Summary of Major Policy Documents ...................................................... 2-13
                                                                                                                          Community Development Block Grant Fund..................................... 3-20
Directory of Boards and Commissions Officials ....................................... 2-16
                                                                                                                          Town Center Management District Fund........................................... 3-20
Boards and Commissions Descriptions ................................................... 2-17
                                                                                                                          Speed Camera Fund……………………….…………………….……….3-21
3 - Fund Summaries                                                                                                             Expenditures [Graph]………………………………………………..3-21
All Funds Summary - Operating................................................................. 3-1                    Debt Service Fund:
All Funds Summary - Capital Improvement Program (CIP) ....................... 3-2                                         Debt Service Fund ............................................................................ 3-22
All Funds Summary by Revenues, Expenditures and Department ............ 3-3                                               General Fund Long-term Debt Summary.......................................... 3-22
General Fund Expenditure and Revenue Summary .................................. 3-4                                       Enterprise Funds – Debt Service Schedules .................................... 3-23
General Fund Revenues, Detail of Major Revenue Sources:                                                                   Enterprise Funds Debt Schedules .................................................... 3-24
     Property Taxes - General.................................................................... 3-5                 Debt Ratios .............................................................................................. 3-25
     Real Property Tax ............................................................................... 3-5            Statement of Projected Unreserved Equity in City Funds ........................ 3-26
     Personal Property Tax ....................................................................... 3-6                4 - Five-Year Forecast
     Real Property Tax Credit .................................................................... 3-6                Five-Year Forecast - Overview................................................................... 4-1
     Income Tax, Highway User Revenue, Tax Duplication ....................... 3-7                                    Total Revenue and Expenditure Summary by Fund................................... 4-2
     Revenues from Other Government Summary..................................... 3-7                                  General Fund Revenue Assumptions ........................................................ 4-3
     Licenses and Permits.......................................................................... 3-8               General Fund Expenditure Assumptions.................................................... 4-4
     Charges for Services .......................................................................... 3-8              General Fund Five-Year Forecast.............................................................. 4-5
                                                                                                                 ii
                                                                                               Table of Contents
Water Fund Five-Year Forecast ................................................................. 4-6                       Housing .................................................................................................... 8-22
Sewer Fund Five-Year Forecast................................................................. 4-7
                                                                                                                          9 - Finance
Refuse Fund Five-Year Forecast ............................................................... 4-8
                                                                                                                          Department Summary ................................................................................ 9-1
Parking Fund Five-Year Forecast............................................................... 4-9
                                                                                                                          Expenditures and Sources of Funds........................................................... 9-2
Stormwater Management Fund Five-Year Forecast................................. 4-10
                                                                                                                          Staffing Summary....................................................................................... 9-2
RedGate Golf Course Fund Five-Year Forecast ...................................... 4-11
                                                                                                                          Administration............................................................................................. 9-4
Speed Camera Fund Five-Year Forecast................................................. 4-12
                                                                                                                          Accounting and Control .............................................................................. 9-6
                                                                                                                          Revenue ................................................................................................... 9-10
Operating Budgets
                                                                                                                          Purchasing and Stockroom ...................................................................... 9-14
5 - Mayor and Council                                                                                                     Budget ...................................................................................................... 9-18
Department Summary ................................................................................ 5-1
                                                                                                                          10 - Human Resources
Expenditures and Sources of Funds .......................................................... 5-2
                                                                                                                          Department Summary .............................................................................. 10-1
Staffing Summary....................................................................................... 5-2
                                                                                                                          Expenditures and Sources of Funds......................................................... 10-2
Office of the Mayor and Council ................................................................. 5-4
                                                                                                                          Staffing Summary..................................................................................... 10-2
Office of the City Clerk ............................................................................... 5-6
                                                                                                                          Human Resources.................................................................................... 10-4
6 - City Attorney                                                                                                         Learning, Performance and Development ................................................ 10-8
Department Summary ................................................................................ 6-1                   Health and Wellness Program ................................................................ 10-10
Expenditures and Sources of Funds .......................................................... 6-2                          Safety and Risk Management................................................................. 10-12
Staffing Summary....................................................................................... 6-2
                                                                                                                          11 - Information and Technology
7 - City Manager                                                                                                          Department Summary .............................................................................. 11-1
Department Summary ................................................................................ 7-1                   Expenditures and Sources of Funds......................................................... 11-2
Expenditures and Sources of Funds .......................................................... 7-2                          Staffing Summary..................................................................................... 11-2
Staffing Summary....................................................................................... 7-2               Information and Technology Operations................................................... 11-4
Executive Office ......................................................................................... 7-4            Voice Communications Operations .......................................................... 11-8
Communication and Public Information .................................................... 7-14                            GIS Operations....................................................................................... 11-12
Neighborhood Resources Program .......................................................... 7-22
                                                                                                                          12 - Police
8 - Community Planning and Development Services                                                                           Department Summary .............................................................................. 12-1
Department Summary ................................................................................ 8-1                   Expenditures and Sources of Funds......................................................... 12-2
Expenditures and Sources of Funds .......................................................... 8-2                          Staffing Summary..................................................................................... 12-2
Staffing Summary....................................................................................... 8-2               Office of the Chief of Police ...................................................................... 12-6
Executive.................................................................................................... 8-4         Field Services Bureau ............................................................................ 12-10
Long Range Planning and Implementation................................................. 8-8                               Administrative Services Bureau.............................................................. 12-14
Planning and Zoning ................................................................................ 8-12                 Special Operations Bureau..................................................................... 12-18
Inspection Services .................................................................................. 8-18

                                                                                                                    iii
                                                                                              Table of Contents
13 - Public Works                                                                                                        Supplemental Information
Department Summary .............................................................................. 13-1
Expenditures and Sources of Funds ........................................................ 13-2                          16 - Appendix
Staffing Summary..................................................................................... 13-2               Administrative Scale Employees Position Grades and Classifications .... 16-1
Management and Support........................................................................ 13-4                      Recreation and Parks Position Grades and Classifications ..................... 16-2
Contract Management.............................................................................. 13-8                   Senior Staff Position Grades and Classifications..................................... 16-2
Traffic and Transportation ...................................................................... 13-10                  Mayor and Council Appointed Positions................................................... 16-2
Engineering ............................................................................................ 13-16           Administrative Scale Employees Pay Scale Annual Salaries................... 16-3
Environmental Management .................................................................. 13-22                        Recreation and Parks Pay Scale Hourly Salaries .................................... 16-3
Operations and Maintenance ................................................................. 13-28                       Senior Administrative Pay Scale Annual Salaries .................................... 16-3
Fleet Services ........................................................................................ 13-34            AFSCME Union Scale Employees Position Grades, Classifications,
                                                                                                                            and Pay Scale Annual Salaries ........................................................... 16-4
14 - Recreation and Parks
                                                                                                                         Police Scale Employees Position Grades, Classifications, and Pay Scale
Department Summary .............................................................................. 14-1                      Annual Salaries ................................................................................... 16-4
Expenditures and Sources of Funds ........................................................ 14-2                          Organizational Structure Listing ............................................................... 16-5
Staffing Summary..................................................................................... 14-2               City of Rockville Organizational Chart...................................................... 16-9
Recreation and Parks Administration....................................................... 14-6                          Department Organizational Charts......................................................... 16-10
Recreation Services ............................................................................... 14-12                Cost Center Summary............................................................................ 16-20
Senior Citizen Services .......................................................................... 14-26                 Line Item Summary ................................................................................ 16-23
Community Services .............................................................................. 14-32                  Non-routine CIP Projects........................................................................ 16-27
Facilities ................................................................................................ 14-42        Glossary ................................................................................................. 16-28
Parks and Open Space .......................................................................... 14-56                    Index....................................................................................................... 16-36
RedGate Golf Course............................................................................. 14-68

15 – Non-Departmental
FY11 Summary of Non-Departmental
    Expenditures by Fund ....................................................................... 15-1
General Fund ........................................................................................... 15-1
Water Fund .............................................................................................. 15-2
Sewer Fund.............................................................................................. 15-2
Refuse Fund............................................................................................. 15-2
Parking Fund............................................................................................ 15-2
Stormwater Management Fund................................................................ 15-3
RedGate Golf Fund .................................................................................. 15-3
Speed Camera Fund................................................................................ 15-3
Town Center Management District Fund.................................................. 15-3
Debt Service Fund ................................................................................... 15-3


                                                                                                                    iv
                                         Introduction to the Budget Document
The City of Rockville Operating Budget and Capital Improvements Program (CIP)            Operating Budgets (Sections 5 – 14)
provide citizens and staff with detailed information about the City’s operations
and spending. The Operating Budget and CIP together serve as a:                          Departmental
                                                                                         The departmental sections provide strategic, operational, performance, and
1.   Policy Document – to describe financial and operating policies, goals, and          budgetary information for each of the City’s departments. The first page of each
     priorities for the organization.                                                    departmental section includes: an organization chart, staffing trend graph,
2.   Financial Plan – to provide revenue and expenditure information by fund,            mission statement, expenditure history graph, and use of funds graph.
     department, division, and category.
                                                                                         A one page Department Summary follows the first page. The Department
3.   Operations Guide – to describe activities, objectives for the fiscal year,          Summary begins with: 1) department expenditures by division, 2) department
     performance measures to track progress on the objectives and the                    expenditures by type, 3) the source of department funds, and 4) a staffing
     workforce.                                                                          summary by division. The remainder of the Department Summary presents
4.   Communications Device – to provide information on budgetary trends,                 significant changes and an overview of the department. In some cases, this part
     planning processes, and integration of the operating and capital budgets.           of the budget includes supplemental information in the form of charts, graphs and
                                                                                         text.

The major sections of the operating budget include:                                      Each department presents financial and operating information by division and
                                                                                         cost center, providing a greater level of detail for the reader. A cost center is a
Overview and Summary Information (Sections 1 – 4)                                        sub-section of a division that is responsible for a significant activity or group of
                                                                                         activities under the purview of the division.
Executive Summary
This section includes the City Manager’s Budget Message, budget highlights,              The first page of each division description shows: 1) division expenditures by cost
position change and FTE summaries, and budget development overview.                      center, 2) division expenditures by type, 3) the source of division funds, and 4) a
                                                                                         staffing summary by cost center. A division purpose statement and significant
Policies and Goals                                                                       changes are also included.
This section lists the City’s financial management policies, the Mayor and Council
Vision, a summary of major policy documents, directories of officials and boards         For each cost center, the budget presents a summary of expenditures and
and commissions, and organizational chart.                                               revenues, as well as objectives, performance measures, regular position titles
                                                                                         and numbers of FTEs, and supplemental information in the form of charts,
Fund Summaries                                                                           graphs, maps and text.
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             Non-Departmental (Section 15)
budget. Revenue and expenditure summary information is detailed by fund and
department and narrative descriptions are given, outlining the sources and trends        This section summarizes the non-departmental operating expenditures (those not
for major revenues.                                                                      charged directly to specific departments but are a cost to the City as a whole)
                                                                                         such as debt service payments.
Five-Year Forecast
This section presents a five-year forecast of the revenues and expenditures for          Appendix (Section 16)
the City’s eight major funds. This section forecasts the City’s revenues and
expenditures based on current and proposed policies, programs, and                       This section contains supporting information, such as employee/position grades,
assumptions.                                                                             classifications and pay scales, organizational listing, organizational charts,
                                                                                         glossary, and index.




                                                                                     v
FY 2011 Budget Ordinance




           vi
FY 2011 Budget Ordinance




           vii
Changes from the FY 2011 Proposed to the Adopted Budget
                                  GENERAL FUND                                                                 WATER FUND
Expenditure Proposed Total                                62,512,515           Expense Proposed Total                                       9,149,050
  City Attorney                                                                  Public Works
      Reduction: Updated Personnel                           (12,360)                Addition: Energy Tax Increase                            36,900
  City Manager                                                                   Non-Departmental
      Addition: Restore Full Citizen Survey                  13,620                  Addition: New Debt                                      225,000
      Addition: Buy Rockville, Part 2                        25,000                  Addition: Full Implementation of CAP                    370,720
  Community Planning and Development Services                                        Reduction: Addition to Net Assets                       (597,360)
      Addition: Various Operating Expenditures               10,800            Expense Adopted Total                                        9,184,310
  Information and Technology
      Addition: Document Imaging Study                       40,000            Revenue Proposed Total                                       9,149,050
      Addition: Wireless Network for City Facilities         15,000              Non-Departmental
  Police                                                                             Addition: Appropriated Net Assets                        35,260
      Addition: Restore 1.0 FTE Housing Codes Inspector      63,470            Revenue Adopted Total                                        9,184,310
  Public Works
      Addition: Energy Tax Increase                          31,530                                            SEWER FUND
  Recreation and Parks                                                         Expense Proposed Total                                       7,754,260
      Addition: Energy Tax Increase                          56,140              Public Works
      Reduction: Various Operating Expenditures              (54,422)                Addition: Energy Tax Increase                               410
  Non-Departmental                                                               Non-Departmental
      Addition: Increase CIP Transfer                       141,000                  Addition: New Debt                                      225,000
      Addition: Increase Parking Fund Transfer              280,000                  Addition: Full Implementation of CAP                    195,620
Expenditure Adopted Total                                 63,122,293           Expense Adopted Total                                        8,175,290


Revenue Proposed Total                                    62,512,515           Revenue Proposed Total                                       7,754,260
  City Manager                                                                   Non-Departmental
      Addition: Cable Operating Grant                        71,040                  Addition: Increase in Sewer Rate from $4.61 to $4.66     77,000
  Information and Technology                                                         Addition: Appropriated Net Assets                       344,030
      Reduction: Cable Operating Grant                       (71,040)          Revenue Adopted Total                                        8,175,290
  Recreation and Parks
      Reduction: Various Operating Revenues                  (53,857)                                          REFUSE FUND
  Non-Departmental                                                             Expense Proposed Total                                       5,553,550
      Reduction: Property Tax ($100 Tax Credit)           (1,540,000)            Non-Departmental
      Reduction: Highway User Revenue                       (127,000)                Addition: Full Implementation of CAP                    338,490
      Addition: Tax Duplication                             793,800                  Reduction: Addition to Net Assets                        (18,650)
      Addition: Full Implementation of CAP                 1,784,120           Expense Adopted Total                                        5,873,390
      Reduction: Appropriated Fund Balance                  (247,285)
Revenue Adopted Total                                     63,122,293           Revenue Proposed Total                                       5,553,550
                                                                                 Non-Departmental
                                                                                     Addition: Appropriated Net Assets                       319,840
                                                                               Revenue Adopted Total                                        5,873,390




                                                                        viii
Changes from the FY 2011 Proposed to the Adopted Budget
                               PARKING FUND                                                             SPECIAL ACTIVITIES FUND
Expense Proposed Total                                       4,027,780         Expenditure Proposed Total                                          1,023,560
  Recreation and Parks                                                           Public Works
      Addition: Updated Personnel                               2,275                Addition: Various Operating Expenditures                           680
      Addition: Energy Tax Increase                             4,680          Expenditure Adopted Total                                           1,024,240
  Non-Departmental
      Addition: Full Implementation of CAP                    383,980          Revenue Proposed Total                                              1,023,560
Expense Adopted Total                                        4,418,715           Public Works
                                                                                     Addition: Appropriated Fund Balance                                680
Revenue Proposed Total                                       4,027,780         Revenue Adopted Total                                               1,024,240
  Police
      Addition: Charge $1 / day for Parking on Saturdays       60,000                                            CDBG FUND
      Addition: Increase Garage Violations from $12 to $40    110,000          Expenditure Proposed Total                                           629,348
  Non-Departmental                                                               Community Planning and Development Services
      Reduction: PILOT Payment                                 (15,000)              Reduction: Various Operating Expenditures                       (15,000)
      Addition: Transfer from General Fund                    280,000          Expenditure Adopted Total                                            614,348
      Reduction: Appropriated Net Assets                       (44,065)
Revenue Adopted Total                                        4,418,715         Revenue Proposed Total                                               629,348
                                                                                 Community Planning and Development Services
                 STORMWATER MANAGEMENT FUND                                          Reduction: CDBG Funding                                         (15,000)
Expense Proposed Total                                       2,953,100         Revenue Adopted Total                                                614,348
  Non-Departmental
      Addition: Full Implementation of CAP                    297,550                     TOWN CENTER MANAGEMENT DISTRICT FUND
Expense Adopted Total                                        3,250,650         Expenditure Proposed Total                                           930,000
                                                                                 Recreation and Parks
Revenue Proposed Total                                       2,953,100               Addition: Updated Personnel                                       2,275
  Non-Departmental                                                                   Addition: Energy Tax Increase                                     2,760
      Addition: Appropriated Net Assets                       297,550            Non-Departmental
Revenue Adopted Total                                        3,250,650               Addition: Full Implementation of CAP                              1,940
                                                                                     Reduction: Addition to Fund Balance                              (6,975)
                           REDGATE GOLF FUND                                   Expenditure Adopted Total                                            930,000
Expense Proposed Total                                       1,641,900
  Non-Departmental                                                                                          SPEED CAMERA FUND
      Addition: Energy Tax Increase                             2,190          Expenditure Proposed Total                                           779,460
      Addition: Full Implementation of CAP                     47,610            Police
Expense Adopted Total                                        1,691,700               Addition: Updated Contract Cost to 2,800 Citations / mo.       277,200
                                                                                 Non-Departmental
Revenue Proposed Total                                       1,641,900               Addition: Full Implementation of CAP                           148,210
  Non-Departmental                                                                   Addition: Addition to Fund Balance                             144,130
      Addition: Appropriated Net Assets                        49,800          Expenditure Adopted Total                                           1,349,000
Revenue Adopted Total                                        1,691,700
                                                                               Revenue Proposed Total                                               779,460
                                                                                 Police
                                                                                     Addition: Increased Citation est. from 1,400 to 2,800 / mo.    672,000
                                                                                     Reduction: Appropriated Fund Balance                           (102,460)
                                                                               Revenue Adopted Total                                               1,349,000

                                                                          ix
                                                                Community Profile
Rockville is the second largest municipality in Maryland and is the seat of              Community Facilities
Montgomery County. It occupies 13.03 square miles within the metropolitan                Private Neighborhood Swim Clubs ................................................................ 19
Washington, D.C. area and is located 12 miles northwest of the nation’s capital. A       Libraries........................................................................................................... 2
major portion of the prestigious I-270 technology corridor is within the City’s          Community Recreation Centers....................................................................... 8
corporate limits. A map is on the following page.                                        Public Parks .................................................................................................. 65
                                                                                         Civic Center Complex (153-acres, 500-seat theatre)....................................... 1
The City of Rockville operates under the council-manager form of municipal
                                                                                         Public Golf Course........................................................................................... 1
government and derives its governing authority from a charter granted by the
                                                                                         Swim Center .................................................................................................... 1
General Assembly of Maryland. The governing body is the Mayor and Council,
                                                                                         Nature Center.................................................................................................. 1
which formulates policies for the administration of the City. The Mayor and
                                                                                         Senior Center .................................................................................................. 1
Council are comprised of a mayor and four councilmembers all directly elected at
                                                                                         Skate Park....................................................................................................... 1
large for two-year terms. The City Manager is appointed by the Mayor and
                                                                                         Farmers’ Market .............................................................................................. 1
Council to serve as the City’s Chief Executive Officer.
                                                                                           (Data from Department of Recreation and Parks)
As mandated by State law, Montgomery County provides for schools, libraries,
social services, and fire protection in Rockville. In addition to the Montgomery         Occupation of Residents
County Police, Rockville residents are served by the City’s own Police                   Managerial and Professional ................................................................... 55.7%
Department. Rockville’s community-oriented policing services are specially               Sales and Office Occupations ................................................................. 22.0%
designed to meet the needs of the community and answer approximately 70                  Service Occupations................................................................................ 12.3%
percent of calls for service. The Rockville Volunteer Fire Department, consisting        Construction, Extraction, Maintenance ...................................................... 5.2%
of more than 200 members and four stations, provides fire protection to Rockville.       Production, Transportation, Material Moving ............................................. 4.8%
 City water and sewer services serve approximately 70 percent of the community,            (Data from 2000 Census)
with Washington Suburban Sanitary Commission (WSSC) serving the remaining
30 percent.                                                                              Ten Largest Corporate Real Property Taxpayers
                                                                                         Brandywine Research LLC ...................................................................... 0.75%
The City provides a full range of services including: public safety; zoning and
                                                                                         TA / Western LLC.................................................................................... 0.66%
planning; one-stop location for licenses, permits, and inspections; water, sewer,
                                                                                         PHF Rockville.......................................................................................... 0.58%
and refuse and recycling services; snow removal, leaf collection, street
                                                                                         Tower Dawson LLC ................................................................................. 0.57%
maintenance, and other public works functions; recreation and parks services;
                                                                                         Verizon .................................................................................................... 0.55%
and special programs for senior citizens, youth, and low-income residents.
                                                                                         Potomac Electric Power (PEPCO)........................................................... 0.53%
Rockville is a residential community and an employment center. Rockville offers a        James Campbell Co. LLC........................................................................ 0.50%
wide variety of housing styles, prices, sizes, and neighborhoods from mid-rise           Four Irvington Center............................................................................... 0.46%
condominiums to Victorian homes and from contemporary models to the more                 FG Retail Group ...................................................................................... 0.45%
traditional.                                                                             Transwestern Gateway............................................................................ 0.38%
                                                                                           (Data from State of Maryland Department of Assessments and Taxation as of
                                                                                            June 30, 2009)




                                                                                     x
                                                                                            Community Profile
Major Shopping Centers                                                                                                   The map below shows the City of Rockville’s location within the State of
Rockville Pike Corridor:                                                                                                 Maryland.
  Congressional Plaza................................................................327,874 sq. ft.
  Congressional North ................................................................185,229 sq. ft.
  Wintergreen Plaza ...................................................................154,072 sq. ft.
  Twinbrook Square......................................................................91,411 sq. ft.
  Total.........................................................................................758,586 sq. ft.
Town Center:
  Courthouse Center ....................................................................44,000 sq. ft.
  Town Square ...........................................................................185,000 sq. ft.
Neighborhood Centers:
  Fallsgrove Village Center.........................................................150,000 sq. ft.
  King Farm Village Center.........................................................122,486 sq. ft.
  College Plaza...........................................................................106,687 sq. ft.
  Twinbrook Shopping Center ....................................................122,805 sq. ft.
  Total.........................................................................................501,978 sq. ft.
    (Data from Department of CPDS)

Ten Largest Private Employers
Westat Inc. ............................................................................................... 1,900
Human Genome Sciences. ......................................................................... 850
Wolpoff & Abramson, LLP ........................................................................... 650
Community Services for Autistic Adults and Children.................................. 545
Booz Allen Hamilton .................................................................................... 500
Lockheed Martin Information Systems. ....................................................... 500
US Pharmacopeia ....................................................................................... 500
J. Craig Venter Institute .............................................................................. 450
BioReliance ................................................................................................. 425
Legal & General America / Banner Life Insurance ..................................... 400
   (Data from Rockville Economic Development, Inc. as of June 30, 2009)




                                                                                                                    xi
                                                                Demographic Statistics
Rockville’s population is estimated at 62,476 for 2010. A detailed breakdown of                   The statistics below are from the City of Rockville Comprehensive Annual
this estimate is not available.                                                                   Financial Report (CAFR) and were provided by the departments of Community
                                                                                                  Planning and Development Services, Public Works, and Recreation and Parks.
The following statistics provide comparative information about the City of
Rockville based on 1990 and 2000 Census data. Information from the latest
Census update in 2005 is also provided.                                                                                                               1990            2000             2009

                                                                                                  Miles of City-Maintained Streets                   131.1              138          156.42
                                                                         2005 Census
                                              1990             2000 *                             Miles of Sidewalks                                 194.9            217.2          297.62
                                                                             Update**
Total Population                            44,835             47,388          53,710             Miles of Storm Sewer                                 48.2            55.5             97.6
Population < 18                             10,379             11,081            12,192           Miles of City-Maintained Water                       N/A              185           178.4
Population 65 +                               4,687             6,215             6,553           Miles of City-Maintained Sewer                       N/A          132.03            141.6
Population 19-64                            29,769             30,092            34,965           Number of Hydrants                                 1,132            1,229           1,369
Median Age                                     34.6              37.8               38.1          Number of Street Lights *                          4,020            4,723           2,992
Total Households                            15,660             17,247            21,895           Number of Building Permits Issued                    687            1,413             741
Per Capita Income                          $21,484           $30,518                N/A           Estimated Cost of Building Permits
                                                                                                                                                     $51.0          $177.0           $161.4
                                                                                                  (in millions)
Median Household Income                    $52,073           $68,074            $82,640
                                                                                                  Acres of Parks                                     880.5            955.0           1,071
High School / College
                                            26,250             29,601            34,618           Number of Playgrounds                                  44              34               48
Graduate
Unemployment Rate                             3.0%               2.1%               N/A           Number of Water Accounts                          11,344          11,770           12,654
White                                       35,491             33,262            36,093           Average Daily Water Consumption
                                                                                                                                                       4.83            4.92             5.02
                                                                                                  (in millions of gallons)
Black / African American                      3,699             4,675             3,008
                                                                                                  *   1990 and 2000 include street lights that are owned by the City of Rockville and street
American Indian / Alaska                                                                               lights that are owned by Pepco. 2009 includes only the street lights that are owned by
                                                119               403               N/A
Native                                                                                                 the City of Rockville.
Asian / Pacific Islander                      4,394             7,688            10,688
Hispanic ***                                  3,863             5,529             7,573
Other                                         1,132             2,946             3,867
*     Population figures beginning 2000 may add to more than the total population because
      individuals were able to report more than one race.
**    Source: 2005 Census Update Survey; research and Technology Center, Montgomery
      County Planning Department, M-NCPPC June 2006
***   Hispanic is of any race.




                                                                                            xii
                                                                                              In order to balance the FY 2011 General Fund budget without resorting to layoffs
                                                                                              or decreasing core programs or services, the adopted budget utilizes a portion of
                                                                                              General Fund reserve funds in excess of our 15 percent reserve requirement.
                                                                                              Approximately $1.0 million of excess reserve funds are included in the adopted
                                                                                              budget to close a budget gap created by decreased revenues and increased
                                                                                              expenditures. More information, including specifics on the various decreases in
                                                                                              revenues and increases in expenditures can be found in the FY 2011 Operating
                                                                                              Revenues and Expenditures section of this letter beginning on page 1-3.

                                                                                              Changes to the Budget Document
                                                                                              There are several changes and improvements to the FY 2011 Operating Budget
                                                                                              and Capital Improvements Program (CIP) documents. The first operating budget
                                                                                              change is the addition of department organizational charts in the Appendix.
                                                                                              These organizational charts provide more detail than the summary charts at the
July 1, 2010                                                                                  beginning of each department section, and allow the reader to easily identify the
                                                                                              number of FTEs that are assigned to each cost center within a Division. In the
                                                                                              future we would like to include these organizational charts on each department
Honorable Mayor and Members of the City Council                                               tab, but due to budgetary constraints this could not be done for the FY 2011
City of Rockville, Maryland                                                                   books.

It is my privilege to present to you the adopted budget for the City of Rockville for         A second improvement to the FY 2011 operating budget document can be seen
Fiscal Year (FY) 2011. The total operating budget for all funds equals $104.9                 in the department summaries and the significant changes sections in each
million, an increase of 3.0 percent from last year. The General Fund budget                   department. For FY 2011, the department summary sections were limited to a
equals $63.1 million, an increase of 1.7 percent. The budget is in line with policy           maximum of three pages, with focus on a department overview, department
direction set by the Mayor and Council, including the revenue and expenditure                 objectives, and significant changes. The reader now has an executive summary
budget principles approved in December 2009 and February 2010. The operating                  of the department. A consistent format has also been adopted for the significant
and capital budgets support existing programs and services, and the City’s basic              changes sections throughout the book. Each significant changes section follows
infrastructure. The current real property tax rate of $0.292 per $100 of assessed             the same pattern of changes to personnel, contractual services, commodities,
valuation will remain the same for FY 2011.                                                   capital outlay, and other. Keeping these sections consistent should make it easier
                                                                                              for the reader to navigate and understand the budget information in each section.
Due to current economic conditions the City is facing the tightest budget year in
over a decade. In order to balance the budget within the guidelines established               A third improvement staff made to the FY 2011 operating budget was to move
by the Mayor and Council, significant cost cutting measures were undertaken                   the outside agency grant funding from the Non-Departmental section into the
across every department. Included in these cost cutting measures is a net                     department sections that manage the agency grants. The departments that now
reduction of 15.3 regular positions across several funds, and major reductions in             contain outside agency grant funding include the Office of the City Manager,
contract services, equipment and program supplies, and staff travel, training and             Finance, Community Planning and Development Services, and Recreation and
professional development. No salary increases are included in the adopted                     Parks. In addition to transferring the outside agency grants, the Non-
budget; however, employee health care and pension contributions are major cost                Departmental section now contains more detail on the items budgeted in each
drivers.                                                                                      fund, including a section on significant changes.

The General Fund budget for FY 2011 is estimated to increase by 1.7 percent                   The FY 2011 operating budget book also includes a number of improvements to
over the FY 2010 adopted budget. Major revenues such as interest earnings,                    the City’s overall performance measurement program. Performance measures
highway user, police protection, and tax duplication are decreasing, while other              and workload indicators have been updated throughout the budget book to show
major revenues such as income tax are expected to remain flat. The General                    whether programs and services are achieving their intended results. For FY
Fund’s largest source of revenue, property tax revenue, is estimated to increase              2011, cost centers focused on performance and workload measures based on
by 1.2 percent from the FY 2010 adopted budget. The City will receive                         industry best practices, connecting measures to organizational goals, and
approximately $1.9 million less in property tax revenues in FY 2011 due to the                evaluating and making adjustments to existing measures. The City will continue
Income Tax Offset Program, which provides a $100 credit to every owner-                       to improve the overall performance measurement program so that we can
occupied property, and the Homeowners’ Tax Credit Program, which is a State                   accurately identify program results, assess past performance, and facilitate
program that provides tax relief to low- to-moderate income homeowners.                       program and service delivery improvements for future years. This is essential

                                                                                        1-1
given current economic conditions because as our resources are constrained, the             5.1 percent for Montgomery County and 6.9 percent for the State of Maryland,
City must become more efficient and, if necessary, revamp or eliminate programs             while the Bureau of Labor Statistics reported that the national unemployment rate
that are not performing to expectations or within the Mayor and Council’s policy            was 9.7 percent. The increase in the region’s unemployment rate has had a
guidelines.                                                                                 negative impact on consumer confidence. Consumers are uncertain that the
                                                                                            economy is improving in the near term, and remain cautious about their spending
In addition to changes in the operating budget, we have made a major                        activities.
improvement to the CIP budget. In the FY 2011 – FY 2015 CIP, the project
sheets include a new project snapshot located under the picture for each project.           Although the City’s revenues are greatly impacted by the economic downturn, the
The purpose of this new section is to provide information on any budget changes             City’s budget continues to fund the needs of the Rockville community. In the FY
between the original budget and the current budget, how much of the project has             2011 budget and beyond, we will continue to look for every opportunity to reduce
been completed, and when residents can expect the project to conclude.                      costs and increase revenues while maintaining high quality services and
                                                                                            programs without increasing the real property tax rate.
Preparing and presenting the annual budget is an exercise of continuous
improvement. Each improvement to the budget document enhances the                           Property Assessments
transparency with which we govern, demonstrates how tax dollars are prudently               Property assessments and new development are principal drivers of City
managed, and shows how the City is planning for the future. Particularly in these           revenues. For several years both new development and property values
uncertain economic times, we want to ensure all information is readily available            increased significantly, providing needed revenue to meet the growing demand
and understandable in order to promote open and thoughtful discussions and                  for basic municipal services and maintenance of public facilities. The rate of new
decision making.                                                                            private development has slowed considerably, and most property assessments
                                                                                            are decreasing. The total taxable assessed value from FY 2010 to FY 2011 is
Major Factors Impacting the FY 2011 Budget                                                  estimated to increase by only 1.4 percent. This shows a major slowing in
                                                                                            assessed values compared to previous fiscal years. All properties in the City
Economic Climate                                                                            were reassessed in January 2009 and January 2010, and many properties
The City’s budget and overall financial plans are directly impacted by the state of         showed significant decreases from the previous triennial assessment cycle.
the regional and national economies. On the national level, the slowing economy
has caused overall fixed income securities rates to remain low. The fixed income            The full impact of the change in assessed values on property tax revenues will
markets are tied to the Federal Funds Target Rate, which was set at 0.0 to 0.25             not be felt immediately due to the method by which the State caps the annual
percent in December 2008 by the Federal Open Market Committee. The Target                   increase in the taxable assessed value through the Homestead Tax Credit. The
Rate remains unchanged as of June 2010. The national fixed income markets                   Homestead Tax Credit was designed to blunt the impact of rapidly rising
have a direct impact on the City’s financial health because of the interest income          assessments, by setting a cap for the amount a residential assessment can
earned on the City’s investment portfolio. In FY 2007 interest rates averaged 5             increase each year. With the Homestead Tax Credit in place, many property
percent, generating $3.2 million in interest earnings. In comparison, in FY 2009            owners are currently paying property taxes on assessed values lower than the
interest rates averaged 1.2 percent and generated only $681,000 in interest                 true assessed values. As assessed values decrease, the taxable assessed
earnings. Staff anticipates rates will remain flat for most of FY 2011, and then            values will equal the true assessed values, which will ultimately lead to a
start to trend upward in FY 2012 and future years.                                          flattening or decline in property tax revenues. The City of Rockville has reached
                                                                                            the point where the taxable assessed values equal the true assessed values, and
Another national indicator, Gross Domestic Product (GDP), is one of the best                will therefore experience a flattening in property tax revenues for FY 2011 and FY
indicators of the country's economic health because it measures the value of all            2012.
goods and services produced in the United States. GDP is estimated to increase
by 3 percent in calendar year 2010 (source: Wall Street Journal Survey). This is a          General Fund Tax Rates and Tax Credits
dramatic change from the second half of 2008 and the first half of 2009, where              The FY 2011 budget will include property tax revenues based on the current tax
GDP decreased by over 5 percent. Some economists believe that this estimated                rates of $0.292 per $100 of assessed value for real property, and $0.805 per
increase for 2010 is the normal market rebound after a recession, but caution               $100 of assessed value for personal property. Property tax revenue is the largest
that the economy still will not be as strong as it was a few years ago.                     General Fund revenue source constituting 56.0 percent of all General Fund
                                                                                            revenues. Under the current tax rates, it is estimated that property tax revenues
On the regional level, the Washington area economy has experienced the same                 will increase by approximately $417,000 or 1.2 percent from the FY 2010 adopted
stresses as the national economy since the middle of 2008, although the                     budget. The increase is due to existing properties being taxed at or closer to full
economic impact has been less severe. Payroll jobs declined throughout 2009,                value, and new property improvements added during the fiscal year.
and although Montgomery County continues to have the lowest unemployment
rate in the State, the rate has steadily increased from 2007. As of the May 2010            The FY 2011 adopted budget includes a one-time tax credit of $100 for every
Monthly Economic Report from Montgomery County, the unemployment rate was                   owner-occupied household through the State’s Income Tax Offset Program. This
                                                                                      1-2
is the third consecutive year that the Mayor and Council have provided this credit          Overall, the FY 2011 total expenditure budget is approximately 23.5 percent
that targets residential properties. Under Maryland law, the City of Rockville may          higher than the FY 2010 adopted budget. In the future if the total cost to manage
grant a real property tax credit that offsets increased income tax revenue. For the         the TCMD continues to increase, the tax rates will also need to increase in order
past two years, Rockville used this program to target tax relief for owner-occupied         to cover all operating expenditures without accumulating a deficit in the Fund.
residential properties (approximately 15,400 in the City). This type of relief is
prudent given current economic conditions because it does not impact future                 Town Center Parking District Tax Rate
revenue growth and the future provision of current service levels.                          In order to manage the operational costs and debt service of the three City-
                                                                                            owned garages in Town Square, the Town Center Parking District was formed in
In addition to the $100 credit, the FY 2011 adopted budget includes the                     2007. The Parking District is a special taxing district that levies a real property tax
Homeowners' Tax Credit Program, which provides tax relief targeting low- to                 on the commercial properties within the Town Square boundaries. The Parking
moderate-income homeowners. This program, estimated to cost $300,000 to                     District Tax rate for FY 2011 will increase by 10 percent from $0.30 to $0.33 per
$400,000 in FY 2011, is a State administered program that provides real property            $100 of assessed value in addition to the $0.292 rate on all real property within
tax credits to residents for property taxes due on their principal residence. Under         the City. This tax will provide approximately $163,000 towards funding the
the City's current program, households with gross incomes up to $85,000 per                 Parking District in FY 2011. More information regarding overall Parking revenues
year and a household net worth of less than $200,000 (not including the value of            can be found on page 1-9.
the home or qualified retirement savings) could qualify for tax relief on the first
$400,000 of their home's assessed value. In FY 2009, the Mayor and Council                  FY 2011 Operating Revenues and Expenditures
expanded this program to include an additional 25 percent credit for seniors 70             Since the FY 2010 budget was adopted, some of the City’s major revenues have
years or older who are primary homeowners.                                                  declined dramatically. On August 26, 2009, the State of Maryland's Board of
                                                                                            Public Works decreased the municipal share of Highway User Revenue (HUR) by
In FY 2006, the first year the City offered the credit, 366 households participated         90 percent and State Aid for Police Protection by 35 percent for all Maryland
and received an average credit of $200. In subsequent years, participating                  municipalities. The revenue reductions from the State totaled approximately
households and average credits were 630 and $308 in FY 2007; 660 and $296 in                $2.16 million for the City's HUR and $217,000 for the City's Police Protection. In
FY 2008; and 749 and $250 in FY 2009. The number of households receiving the                total, as of October 2009, the City's FY 2010 General Fund budget was $2.38
credit increased by 13.5 percent from FY 2008 to FY 2009. It is anticipated that            million out of balance.
the number of participating households will continue to increase because of the
more generous program parameters put into place in FY 2010.                                 In order to re-balance the budget in October, we recommended several
                                                                                            measures that reduced expenditures across all City departments. We evaluated
The City will receive approximately $1.9 million less in property tax revenues in           all regular vacant positions, operating programs and services, as well as CIP
FY 2011 due to the Income Tax Offset Program ($1.54 million) and the                        projects scheduled for FY 2010 and future years, and recommended freezing 8.3
Homeowners’ Tax Credit Program ($400,000) with senior credit.                               Full Time Equivalent (FTE) vacant General Fund positions, reducing the overall
                                                                                            General Fund operating budget by $373,000 through reductions in program
Town Center Management District Tax Rates                                                   supplies, employee travel, training, and consultants, and reducing the transfer to
The Town Center Management District (TCMD) is funded through the Town                       the Capital Projects Fund by approximately $1.7 million. The Mayor and Council
Square Street and Area Lighting Tax District and the Town Square Commercial                 approved this plan and re-balanced the operating budget on October 26, 2009.
Tax District. These taxing districts, which levy special property taxes on the
properties within the Town Square boundaries, were created in FY 2008 to                    As of December 31, 2009, two more of the City's revenue sources were
support the maintenance and operational costs of the TCMD. The tax rates are                significantly under budget. Building permits were estimated to come in $300,000
set to cover the FY 2011 adopted budget for the TCMD Fund of $819,710.                      lower than the adopted budget, and interest income was estimated to come in
                                                                                            $275,000 lower than the adopted budget. To help offset these decreases, we
The Town Square Street and Area Lighting Tax District will levy a real property             recommended increasing both red light camera revenue and admission and
tax of $0.116 per $100 of assessed value on residential and commercial                      amusement tax revenue based on projections of better than anticipated levels. In
properties within the Town Square boundaries. This is a 10 percent increase from            addition, we recommended utilizing $745,000 in General Fund excess reserves
$0.105, and is expected to yield $222,000 from residential properties and                   to help offset these revenue decreases, and to help pay for additional
$57,000 from commercial properties for a total of $279,000. The Town Square                 expenditures associated with the severe snow and ice storms that took place in
Commercial Tax District will levy a property tax of $1.32 per $100 of assessed              February 2010. Utilizing fund balance during the fiscal year is consistent with the
value on commercial property within the Town Square boundaries, which is also a             City's Financial Management Policies, which state that the General Fund
ten percent increase from $1.20. Staff anticipates that this tax rate will yield            reserves can be used to alleviate significant unanticipated budget shortfalls
$651,000. The 10 percent increases are necessary in order to raise enough                   during the fiscal year. The $745,000 in fund balance that was utilized did not
revenue to cover the annual operating expenditures, and to close the                        reduce the City’s reserve below the required level.
accumulated deficit in the Fund.
                                                                                      1-3
For FY 2011, the trend of reduced revenues will continue, coupled with new                     (1.0) FTE Civil Engineer II – Public Works
expenditures, including increases in the employee pension contribution, debt                   (1.0) FTE Civil Engineer I – Public Works
service costs, and health care benefits, and continued financial support of the                (3.0) FTEs Sanitation Worker – Public Works
City’s Parking and Capital Projects funds.                                                     (1.0) FTE Sanitation Operator – Public Works
                                                                                               (0.8) FTE Childcare Staff – Recreation and Parks
To help offset the new expenditure increases, we reduced department operating                  (0.5) FTE Clerk II – Recreation and Parks
budgets by over $1.0 million in such areas as regular FTEs, consultants and
                                                                                               (1.0) FTE Lifeguard II – Recreation and Parks
outside trainers, employee travel and training, contract services, program
                                                                                               (1.0) FTE Laborer – Recreation and Parks
supplies, and furniture and equipment. Even with these reductions, like many
other local governments, Rockville’s FY 2011 budget has a budget gap. To
                                                                                           Only one new position was added to the FY 2011 operating budget. This new
balance the General Fund revenue and expenditure budgets, the FY 2011
                                                                                           position, 1.0 FTE Loss Control Administrator, is a critical part of the City’s move
adopted budget utilizes approximately $1.0 million in General Fund excess
                                                                                           from the Montgomery County Insurance Pool to other insurance carriers and
reserves above the 15 percent reserve requirement. The City’s current policy is to
                                                                                           programs. It is deemed to be essential in assuring workplace safety and will aid in
maintain an unreserved General Fund fund balance at a level not less than 15
                                                                                           the control of the City’s financial losses resulting from workplace injuries. The
percent of annual General Fund revenue. This proposal will result in a fund
                                                                                           primary function of this new position is to implement and monitor effective
balance of approximately 17.5 percent.
                                                                                           Citywide employee safety compliance programs. This position also ensures
                                                                                           compliance with the Occupational Safety and Health Act (OSHA), Maryland
One of the City’s Financial Management Policies states that “[t]he City defines a
                                                                                           Department of Occupational Safety and Health (MOSH), and related safety
balanced budget as a budget that has operating revenues equal to operating
                                                                                           standards for all City departments.
expenditures. It is the City's policy to fund current year operating expenditures
with current year revenues, inclusive of debt service.” Balancing the budget with
                                                                                           Due to the major revenue constraints and additional required expenditures in FY
excess reserve funds is an exception to this policy. The General Fund reserve
                                                                                           2011, the adopted budget, with one exception, recommends no increases to
fund balance is not considered current operating revenue, but one-time funds. At
                                                                                           employee compensation. This budget includes no across the board salary
this time, however, we are comfortable bridging the gap with a portion of excess
                                                                                           increases, step increases, or merit adjustments. For FY 2011, 33 employees
reserves. This approach was anticipated in early-FY 2010, when we
                                                                                           were budgeted to receive longevity pay estimated at $160,000 for all funds, which
recommended the Mayor and Council not utilize excess reserves during FY 2010,
                                                                                           is recommended.
but rather retain these excess reserves to address the anticipated budget deficit
in FY 2011.
                                                                                           For FY 2012 and future years, more reductions to ongoing personnel
                                                                                           expenditures may be necessary in order to balance the budget. Reductions in
Although we are currently able to maintain basic programs and service levels in
                                                                                           personnel expenditures could come in the form of decreases in the number of
the FY 2011 budget by utilizing some General Fund excess reserves, more
                                                                                           regular or temporary FTEs or reductions to base salaries. Continued reductions
ongoing operating reductions may be necessary in the future if the City’s major
                                                                                           in personnel expenditures may make it challenging in the future to attract and
revenue sources decrease further or remain flat. The City should not rely on
                                                                                           retain talented employees. Please refer to pages 1-11 and 1-12 for detail on the
excess reserves to balance the budget, and should use these reserves on an
                                                                                           FTE changes by department and fund.
exception basis only.
                                                                                           FY 2011 Major Programmatic Changes
City Staffing
                                                                                           We are currently engaged in several programmatic changes or updates that will
The FY 2011 operating budget includes a net decrease of 15.3 FTEs (16.3 FTEs
                                                                                           mitigate some of our biggest cost drivers for FY 2011 and future years. These
deleted and 1.0 FTE added) across all funds. The 16.3 deleted FTES are listed
                                                                                           changes or updates relate to the City insurance funds, pension plan, cost
below. To maintain current programs and operations, the City will utilize where
                                                                                           allocation methods, health care benefits, and future technology plans.
necessary temporary employees, current regular employees, and consultants to
perform the responsibilities of the deleted positions, which achieves significant
                                                                                           The first programmatic change involves the City’s insurance programs - property,
cost savings.
                                                                                           general liability, and workers’ compensation. The City has been a member of the
                                                                                           Montgomery County Insurance Pool since it began in the 1970s. In early FY
    (1.0) FTE Planner III – Community Planning and Development Srv.
                                                                                           2010, we learned that the Pool’s rates were going to increase by 35 percent, or
    (1.0) FTE Admin. Assistant II – Community Planning and Development Srv.                approximately $545,000 (all funds), for FY 2011. In mid-FY 2010 we reviewed
    (1.0) FTE Secretary I – Human Resources                                                other ways of obtaining these insurance products, and succeeded in finding
    (1.0) FTE Parking Enforcement Officer – Police                                         similar or improved coverage at considerably lower costs. In February 2010, the
    (1.0) FTE Photo Enforcement Analyst – Police                                           Mayor and Council received information about the benefits of the City leaving the
    (1.0) FTE Inspection Aide – Public Works                                               Pool effective July 1, 2010. This change is estimated to save the City hundreds of
    (1.0) FTE Traffic Signal and Lighting Technician – Public Works                        thousands of dollars, and will allow staff to be more hands on with administering
                                                                                     1-4
claims. Staff will be utilizing a new 1.0 FTE, Loss Control Administrator, to assist         technology can increase our efficiency, control the costs of government, and
the Risk Manager with managing the new programs and vendors.                                 improve government services in ways that benefit our citizens and improve
                                                                                             internal management. The City’s need to use technology effectively compels us
A second major programmatic change involves the City’s pension plan.                         to recognize information technology as a powerful business force subject to
Recognizing that the recent turmoil in the financial markets will have significant           continuous change. It is imperative that the City keeps pace with changing
cost impacts to the City’s budget in FY 2011 and future years, staff is researching          technology and applications. For this reason, in FY 2010 we began a
alternative plan design elements that would have significant long-term financial             comprehensive update of the City’s Information Technology Strategic Plan. This
benefits to the City. These plan design elements are related to changes                      five-year Strategic Plan will serve as a roadmap for information technology
impacting normal retirement and early retirement age, vesting requirements,                  acquisition, development, deployment, use, budgeting, work plans, maintenance
penalties for early withdrawal, and supplemental employee contributions to the               and support. This plan will be presented for the Mayor and Council’s
pension plan. The City’s pension plan actuary is in the process of compiling                 consideration in fall 2010.
financial information that will be presented to the Mayor and Council during FY
2011. This pension plan review is the most comprehensive review undertaken                   Maintaining our Infrastructure/Capital Projects
since 1986 when the plan was converted from a defined benefit plan to a hybrid               Maintaining and enhancing the City’s infrastructure is critical to the City’s future.
defined benefit and thrift plan for union and administrative employees.                      Given the City’s current financial commitments and the overall state of the
                                                                                             economy, the CIP addresses many, but not all, of the City’s infrastructure needs.
In addition to the plan design elements, the Retirement Board recently approved              Through the budget development process, we evaluated the current five-year CIP
a vendor search for the administration of both of the City’s pension plans. This is          plan, and by utilizing the City's formal CIP prioritization process, made
the first time in over 20 years that the City will perform a vendor search with the          recommendations on which projects should be funded because they are critical to
goal of increased service, lower costs, and improved investment products. The                improving our overall service delivery and the overall quality of life for our
vendor search will conclude in summer 2010.                                                  residents, and which projects should be unfunded or deferred to future years.
                                                                                             There are currently 33 projects that are under-funded or unfunded by $40.1
A third major programmatic change relates to updates to the City’s Cost                      million in the capital budget from FY 2011 through FY 2015. Of the 33 projects,
Allocation Plan (CAP). The last time the CAP was updated was in 1999/2000. In                10 are completely unfunded.
FY 2009, the Mayor and Council approved funding for an update to the CAP to
determine if the administrative charges were consistent with actual operations.              Even with these adjustments, $6.5 million in new borrowing will be added to the
The CAP was finalized in FY 2010 and adopted by the Mayor and Council on                     FY 2013 budget to fund asphalt and concrete repair and replacement. In order to
April 19, 2010. The results showed that the administrative charges should be                 eliminate future borrowing for routine maintenance, or to fund additional projects
increased across all existing funds, and should be added to the Town Center                  that are currently unfunded or under-funded, the Mayor and Council may need to
Management District and Speed Camera funds. For FY 2011, each fund will                      reduce the current level of programs and services the City offers, or re-prioritize
support their full administrative charge with the exception of Town Center                   currently funded CIP projects over the next several years.
Management District and RedGate Golf Course. The increase in expenditures for
the Town Center Management District Fund will be phased in over a three-year                 The FY 2011 CIP budget includes new funding of approximately $22 million; this
period, and the increase in expenses for the RedGate Golf Course will be                     new funding combined with prior year unspent funding will support 61 CIP
reduced by 50 percent per the final year of the RedGate Golf Course Business                 projects. The Capital Projects Fund provides approximately 35 percent of the
Plan.                                                                                        CIP’s new funding and the City’s enterprise funds (water, sewer, refuse,
                                                                                             stormwater, parking, golf) and the Speed Camera Fund provides the remaining
Another programmatic change relates to the City’s health care benefits. Health               65 percent.
care benefits make up approximately 7 percent of the City’s overall employee
compensation package. We are in the process of evaluating the results of a                   Of the 61 projects, there are 3 major projects essential to keeping up with the
proposal for broker services that will allow the City to negotiate for improved              City’s growing population and additional service demands. These projects include
contracts and more competitive health care rates going forward. This is the first            the Police Station, which funds the renovation of the Old Post Office and the
time in over a decade that we will consider a complete overhaul of the City’s                design and construction of an addition to the building; Gude Drive Maintenance
benefits programs. It is anticipated that the broker will shop for contracts for             Facility, which funds the modernization of the current facility; and the Senior
medical insurance, dental and vision insurance, life insurance, and short/long               Center, which funds expansion of the exercise space and improvements to the
term disability insurance, while integrating employee wellness programs in order             Center. The Mayor and Council appropriated funds for these three projects in FY
to reduce overall costs.                                                                     2009 and FY 2010.

The last major programmatic change involves the City’s Information Technology                In order to fund the FY 2011 capital budget responsibly, the City plans to transfer
Strategic Plan. Technology is essential to achieving continuous improvement in               $3.1 million from the General Fund (“pay-go”) to the Capital Projects Fund. In
service delivery during a period of constrained resources. The effective use of
                                                                                       1-5
addition to this pay-go transfer, the City plans to issue approximately $13 million         over FY 2010. Approximately 34.7 percent of the total ($192,345) supports
in debt in FY 2011 when conditions are most favorable.                                      agencies that provide housing assistance or food and clothing services.
                                                                                            Approximately 43.7 percent of the total ($241,525) supports medical programs,
Speed Camera Program                                                                        home health care for seniors, youth and family services, and emergency financial
In October 2009, a new State of Maryland law took effect that changed the                   assistance. Approximately 16.9 percent ($93,400) supports cultural diversity
threshold speed limit from 11 miles per hour to 12 miles per hour and limited the           programs. The remaining 4.7 percent ($26,000) is for caregiver agency grant
use of speed cameras in school zones to Monday through Friday from 6:00 am to               contingency funding and is included in the Non-Departmental budget to meet
8:00 pm. Based on current estimates, this new law decreased the total number of             caregiver agencies’ mid-year emergency needs. More information regarding the
citations the City issues each month from approximately 4,900 to 2,800, or                  caregiver budget can be found in Section 14, Department of Recreation and
approximately 43 percent. This decrease impacts program revenues for FY 2011,               Parks, Division of Community Services.
and will dramatically impact the future of the City's program and Speed Camera
funded CIP projects.                                                                        Budget Overview

Under the current assumptions, the FY 2011 Speed Camera Fund will support                   The adopted FY 2011 operating budget totals approximately $104.9 million for
5.5 positions (a decrease of 1.5 FTEs), the operating costs of the program, as              the City’s 12 operating funds. This represents an overall increase of 3.0 percent
well as several CIP projects which focus on pedestrian and traffic safety in FY             from the FY 2010 adopted budget.
2011. Although several CIP projects are funded with Speed Camera revenue in
                                                                                            TABLE 1: Total Resource Allocation by Department, All Funds
FY 2011, the majority of Speed Camera funding was removed from future years.
The following CIP projects will be impacted by this significant decrease in                    Expenditures by            Actual           Adopted           Adopted          %
revenues: Accessible Pedestrian Signals, Illuminated Street Signs, Pedestrian                    Department               FY09              FY10              FY11          Change
Safety, Sidewalks, Street Lighting Improvements, and Traffic Controls. Some of
                                                                                              Mayor and Council            1,578,461           644,400           598,250       -7.2%
these projects still contain some funding from the Speed Camera Fund in FY
2011 and/or the Capital Projects Fund in FY 2011 through future years.                        City Attorney                        N/A         908,500           929,350       2.3%
                                                                                              City Manager                 3,173,928         4,002,900         4,487,330      12.1%
In the last quarter of FY 2010, the Rockville City Police Department started
                                                                                              CPDS                         4,871,129         4,629,100         4,718,113       1.9%
adding "portable camera units" (PCU's) to the City's speed camera program.
PCU's contain all the technology and the flash unit in one box that can be                    Finance                      2,814,295         3,248,700         3,361,300       3.5%
transported easily from one location to the next. These units do not require an               Human Resources              1,214,399         1,319,400         1,322,190       0.2%
employee to operate, and they can be deployed to locations where the fixed                    Info. and Tech.              2,971,126         2,877,100         2,958,220       2.8%
poles and the speed van are limited. The number of citations issued due to the
new PCU's will equal approximately 1,400 of the 2,800 estimated per month.                    Police                       9,604,745        10,814,400        10,050,950       -7.1%
                                                                                              Public Works                19,295,924        21,627,210        22,281,060       3.0%
Human Services / Caregivers                                                                   Recreation & Parks          20,790,988        23,336,215        23,453,828       0.5%
The City supports those with significant human service needs through grants to
caregiver agencies. Each year the Division of Community Services coordinates                  Non-Departmental            25,798,935        21,125,502        25,225,900      19.4%
the review and evaluation of all caregiver and outside agency funding requests                Subtotal                    92,113,930        94,533,427        99,386,491       5.1%
received by the City. For FY 2011, two committees were again established for                  Debt Service Fund *          5,167,978         5,098,008         5,300,000       4.0%
this process. The first committee, the employee panel, was made up of three City
employees representing the departments of the City Manager, Finance, and                      Addition to Fund
                                                                                                                                     -       2,202,500           247,445     -88.8%
Recreation and Parks. The second committee, the community panel, was made                     Balance / Net Asset
up of three members representing the Human Services Advisory Commission,                      Total                       97,281,908       101,833,935      104,933,936        3.0%
the Human Rights Commission, and the Recreation and Park Advisory Board.
                                                                                            * The Debt Service Fund receives transfers from other funds to pay off general obligation
The committees review and evaluate each application, and develop funding
                                                                                            bonds. Since these transfers are already listed as Debt Service expenditures within
recommendations for each program. These recommendations take into account                   originating funds, there is a double-counting effect when the Debt Service Fund records the
the number of City residents served, the demonstrated need for the service, and             same expenditures. For this reason, the Debt Service Fund is isolated.
the quality of the application.
                                                                                            Approximately 60 percent of the City’s spending comes from the tax-supported
Each committee’s funding recommendations were compared and, in an effort to                 General Fund. Other significant funds include the Water, Sewer, Refuse, Parking,
increase the amount of funding the City provides to the caregivers in FY 2011,              Stormwater Management, and Golf funds. User fees charged to City households,
the higher of the two recommendations was included in the FY 2011 adopted                   businesses, and golf course users support these enterprise funds. Five-year and
budget. The total Caregiver budget for FY 2011 equals $553,270 or 7.7 percent               ten-year cash flow projections are prepared to determine the fees charged.
                                                                                      1-6
The City’s six enterprise funds operate and account for their transactions in a way          TABLE 3: General Fund Expenditures by Type
similar to private businesses. By Mayor and Council policy, the funds are to be
self-supporting; i.e., their fees and charges are supposed to be sufficient to                      Expenditures             Actual        Adopted        Adopted        %
recover all operating costs, both direct and indirect, and all capital outlay,                        by Type                FY09           FY10           FY11        Change
infrastructure and debt service costs as well as maintain sufficient reserve levels
to allow for stable rates. Each fund is described in more detail below. For more                 Salaries                   27,288,095     30,086,950     29,661,020       -1.4%
information on each fund (including revenue and expense details), please refer to                Benefits                    8,741,926      7,924,102      9,867,640      24.5%
Section 3, Fund Summaries and Section 4, Five-Year Forecast.                                     Overtime                      911,725        787,200        820,380       4.2%
                                                                                               Personnel Subtotal           36,941,746     38,798,252     40,349,040       4.0%
General Fund
The General Fund is the primary operating fund of the City and is used to                        Contractual Services        7,373,957      7,100,580      6,725,625       -5.3%
account for the majority of the City's daily operations. Many of the City's core                 Commodities                 4,517,281      5,108,630      4,992,238       -2.3%
services and administrative functions are supported through the General Fund.
                                                                                               Operating Subtotal           11,891,238     12,209,210     11,717,863       -4.0%
The major revenue sources for the General Fund are property taxes, income tax,
highway user tax, tax duplication, hotel tax, and charges or user fees for services.           Capital Outlay                  644,462        457,000        480,620       5.2%
These revenue sources in total comprise 83.6 percent of the FY 2011 adopted                    Other / Transfer              2,173,247      2,518,125      2,333,770       -7.3%
General Fund budget.                                                                           Contribution to CIP           8,533,695      4,100,000      3,141,000     -23.4%

Because of the decreases in the City’s major revenue sources, the FY 2011                      Debt Service Transfer         4,099,629      4,000,000      5,100,000      27.5%
operating budget relies on a portion of excess reserve funds in order to balance.              Total                        64,284,016     62,082,587     63,122,293       1.7%
One of the City’s Financial Management Policies is to maintain a reserve fund
balance in the General Fund of at least 15 percent of adopted annual revenues.               Personnel costs will increase in total by 4.0 percent, or $1.6 million, due to
The FY 2011 budget relies on approximately $1.0 million in excess of that 15                 increased benefit costs. As a result of the turmoil in the financial markets during
percent reserve requirement, resulting in a projected reserve level of 17.5                  the latter part of 2008 and early 2009, from FY 2009 to FY 2012 the City's annual
percent.                                                                                     required contribution to the pension fund will increase by 179.8 percent from the
                                                                                             FY 2009 contribution of $1.58 million to $4.42 million projected in FY 2012. This
In total, the overall General Fund budget will increase from the FY 2010 Adopted             represents an average increase of approximately $950,000 a year, or an average
Budget by 1.7 percent to $63.1 million. The Fund Summaries section of the                    increase of 41.5 percent per year. These projected increases in the City's
budget includes detailed information on the major FY 2011 General Fund                       contributions are significant and greatly impact the FY 2011 and future years
revenue sources. Table 2 below summarizes the General Fund revenue sources.                  budgets. For FY 2011, the City will need to contribute a total of $3.48 million
Table 3 highlights the expenditure authority by category with the percent change             across all funds, with approximately 80 percent, or $2.75 million, coming from the
from the FY 2010 General Fund budget.                                                        General Fund.

TABLE 2: General Fund Revenues by Type                                                       In addition to the annual required contribution to the pension fund, the City is
       General Fund              Actual        Adopted        Adopted         %
                                                                                             required to contribute to the retiree benefit trust. In FY 2009, the City set up an
        Revenues                 FY09           FY10           FY11         Change
                                                                                             irrevocable trust fund to begin prefunding retiree health care benefits as required
                                                                                             under GASB 45. The City contributed $1.3 million to the trust in FY 2009, which
   Property Taxes               34,526,050     34,345,140     34,762,000        1.2%         was the full liability provided in the FY 2009 actuarial valuation report. The FY
   Licenses and Permits          1,606,198      1,954,500      1,660,000      -15.1%         2010 adopted General Fund budget did not include a contribution to the retiree
                                                                                             benefit trust because with the trust fully funded in FY 2009, we anticipated no
   Rev. from Other Gov't.       17,801,482     16,237,724     13,527,213      -16.7%
                                                                                             required additional contribution in FY 2010. The City, however, received the FY
   Charges for Services          5,473,186      5,873,558      5,853,405       -0.3%         2010 actuarial report in December 2009, and the report stated that the City
   Fines and Forfeitures           648,477        619,000        645,000        4.2%         should contribute a minimum of $130,078 from the General Fund ($166,000 all
                                                                                             funds) to the trust for FY 2010, and an additional $300,000 from the General
   Use of Money / Property         330,784        466,375        322,080      -30.9%
                                                                                             Fund ($367,000 all funds) for FY 2011.
   Other Revenue                 2,451,549      2,586,290      5,332,970     106.2%
   Subtotal                     62,837,728     62,082,587     62,102,668        0.0%         Although the FY 2011 budget includes benefit increases, it does not include any
   Appr. Fund Balance                     -              -     1,019,625         N/A         across the board salary increases, step increases, or merit adjustments. Overall,
                                                                                             the total General Fund FTE count decreased by a net total of 8.5 FTEs from the
   Total                        62,837,728     62,082,587     63,122,293        1.7%         FY 2010 adopted. This decrease is due to the reduction of 2.0 FTEs in
                                                                                             Community Planning and Development Services, 3.2 FTEs in Public Works, and
                                                                                       1-7
3.3 FTEs in Recreation and Parks. Only one new position was added to the                    To fund the increases in both the operating and CIP budgets, and in accordance
General Fund for FY 2011, in the Department of Human Resources. This new 1.0                with the Mayor and Council's adopted plan, the water usage rates will increase by
FTE Loss Control Administrator was offset by the elimination of a 1.0 FTE                   another 24.5 percent in FY 2012, with 5.0 to 5.2 percent increases planned for
Secretary I. Please refer to pages 1-11 and 1-12 for more detail on the FTE                 future years.
changes by department and fund.
                                                                                            The adopted rates for FY 2011 increased by 25 percent, and continue to follow
Table 4 shows total General Fund expenditures by department for FY 2011.                    the three-tier structure:
Major changes include a 7.2 percent decrease in the Department of the Mayor                           $3.48 per thousand gallons for the first 12,000 gallons per quarter
and Council due to the removal of election costs, an increase of 16.5 percent in                      $5.01 per thousand gallons for the next 12,000 gallons per quarter
the Department of the City Manager due to the transfer of REDI’s $530,120                             $5.37 per thousand gallons for usage over 24,000 gallons per quarter
budget from Non-Departmental, and a decrease of 3.0 percent in Non-
Departmental due to transferring outside agency grants to departments. All major            In addition to the water usage rate, customers pay a ready-to-serve charge that is
funding adjustments are detailed in each department’s section throughout the                split equally between the Water and Sewer funds. The amount of the charge is
budget.                                                                                     based on the size of the water meter and ranges from $6.56 to $787.20 per
                                                                                            quarter, an increase of 3 percent from adopted FY 2010. A history of rates can
TABLE 4: General Fund Expenditures by Department                                            be found on page 3-11.
     Expenditures by            Actual        Adopted        Adopted        %
       Department               FY09           FY10           FY11        Change
                                                                                            Approximately 30 percent of Rockville residents do not receive water and sewer
                                                                                            service from the City, but are serviced by the Washington Suburban Sanitary
  Mayor and Council             1,575,987        644,400        598,250      -7.2%          Commission’s (WSSC) system. The locations in WSSC’s system include King
  City Attorney                      N/A         908,500        929,350       2.3%          Farm, Twinbrook (portion on the east side), Potomac Woods (small portion on
                                                                                            the south side), and College Gardens. WSSC’s adopted water rates for FY 2011
  City Manager                  3,120,120      3,501,000      4,078,530      16.5%
                                                                                            will increase by 8.5 percent.
  CPDS                          3,819,377      4,021,100      4,103,765       2.1%
  Finance                       2,080,816      2,423,400      2,525,230       4.2%          Sewer Fund
                                                                                            The Sewer Fund accounts for the financial activity associated with the collection
  Human Resources               1,214,399      1,319,400      1,322,190       0.2%
                                                                                            and disposal of sewage. Charges are based on water consumption. Nearly all of
  Information and Tech.         2,971,126      2,877,100      2,958,220       2.8%          the capital costs in the Sewer Fund, and a substantial portion of the operating
  Police                        8,105,771      8,445,800      8,733,330       3.4%          costs, are payments for the operation of and capital improvements to the District
  Public Works                  6,068,011      6,380,350      6,366,470      -0.2%          of Columbia Water and Sewer Authority’s (DCWASA) Blue Plains Advanced
                                                                                            Wastewater Treatment Plant. The City’s share of Blue Plains’ capital
  Recreation & Parks           18,532,833     19,551,635     19,861,928       1.6%          improvements is proportionate to the City’s allocation of treatment capacity. The
  Non-Departmental             16,795,576     12,009,902     11,645,030      -3.0%          Blue Plains Wastewater Treatment CIP project contains additional information
  Total                        64,284,016     62,082,587     63,122,293       1.7%          regarding the City’s capital costs for sewer treatment.

                                                                                            The Sewer Fund budget for FY 2011 is based on a sewer charge of $4.66 per
Water Fund                                                                                  1,000 gallons. This is an increase of $0.54 or 13.0 percent over the FY 2010
The Water Fund is used to account for the financial activity associated with the            adopted rate of $4.12 per 1,000 gallons. This increase is greater than the original
treatment and distribution of potable water. In FY 2008, the Department of Public           plan adopted by the Mayor and Council in FY 2008 because the City's
Works presented two comprehensive studies that evaluated the City's overall                 contribution to Blue Plains had an unexpected significant increase in FY 2010,
water program related to the Water Treatment Plant and the Water Distribution               and will continue to increase in FY 2011 and future years (including an additional
System. As a result of these two studies, starting in FY 2009 the City increased            $15 million that is needed in the CIP for FY 2011 through FY 2015). In addition to
both the Water Fund operating and CIP budgets to address the concerns that                  the sewer charge, users pay a ready-to-serve charge that is split equally between
were identified. One major CIP project developed in response to the needs                   the Water and Sewer funds. The amount of the charge is based on the size of the
identified in the studies is the Water Main Rehabilitation project. This project,           water meter and ranges from $6.56 to $787.20 per quarter, an increase of 3
which currently totals over $76 million, will support a 20-year replacement of over         percent from adopted FY 2010. A history of rates can be found on page 3-13.
34 miles of the City’s aging water system (the Water Main Rehabilitation project
can be found on page 107 of the CIP).                                                       As mentioned previously, approximately 30 percent of Rockville residents do not
                                                                                            receive water or sewer service from the City, but are serviced by the Washington
                                                                                            Suburban Sanitary Commission’s (WSSC) system. WSSC’s adopted sewer rates
                                                                                            for FY 2011 will increase by 8.5 percent.
                                                                                      1-8
Refuse Fund                                                                                enables the City to charge an annual fee per Equivalent Residential Unit ("ERU").
The Refuse Fund is used to account for the financial activity associated with the          Although the Mayor and Council adopted the ordinance that enabled the fee, no
collection and disposal of recycling, refuse, and yardwaste. The refuse rate for           fee was adopted in FY 2009. The expenses for the new program in FY 2009 were
the FY 2011 budget will remain the same as the adopted FY 2010 rate of                     funded from the Stormwater Management Fund's reserve.
$392.40 per year. The semi-automated once per week system, which became
fully operational Citywide in December 2009, provides reduced operating                    For the FY 2010 budget, a fixed fee of $40.00 per ERU was implemented, which
expenses because fewer personnel (including a reduction of 4.0 regular FTEs in             is estimated to generate $1.6 million in fee revenue. For FY 2011, the adopted
FY 2011), contractual services, commodities, and vehicles and equipment are                utility fee will increase to $49.20, as approved by the Mayor and Council in April
needed. Because of these reduced operating expenses, the rate has remained                 2009. Each residential property will pay $49.20 per year, or one ERU, and each
the same since FY 2008. The estimated FY 2011 rate projected for leaving the               commercial property will pay $49.20 multiplied by the number of ERU’s measured
old system in place was $462.60. This semi-automated once per week program                 on their property. This fee was developed to generate sufficient revenue to cover
not only costs less than the system it replaced, it also complements the City’s            the operating and capital expenses of the Stormwater Management Fund for FY
environmental sustainability program.                                                      2011 and future years.

Parking Fund                                                                               The total operating budget for FY 2011 and future years has been scaled back
The Parking Fund was created to account for the revenue and expenses from                  from the original plan approved by the Mayor and Council in order to decrease
parking related activities, including the issuance of parking tickets, the parking         the program expenses, while still complying with State and Federal regulations.
meter program, and costs associated with the operation of the three public                 The program as adopted by the Mayor and Council included 4.0 new FTEs in FY
parking garages in the City’s Town Center. FY 2011 is the third full year the City         2010 and 6.0 new FTEs in 2011. The scaled back program included a net
will charge for parking in the three public garages.                                       increase of 3.6 FTEs in FY 2010 and a total reduction of 1.3 FTEs (0.45 FTEs in
                                                                                           Contract Management and 0.85 FTEs in Engineering) in 2011. Staff is currently
The current parking rate in the Town Center garages is $1.00 per hour Monday               working on an analysis to determine if the program can be fully implemented with
through Friday, 7:00 am to 6:00 pm, a $1.00 flat fee from Monday through Friday,           the reduced number of FTEs, and will return to the Mayor and Council with any
6:00 pm to 10:00 pm, and $1.00 flat fee for all day Saturdays. Under the current           potential changes to the adopted program.
assumptions, the FY 2011 Parking Fund will support 5.9 full-time positions (a
decrease of 1.0 FTE Parking Enforcement Officer), the operating cost and                   RedGate Golf Fund
management of the garages, and annual debt service.                                        The RedGate Golf Fund is used to account for the financial activity associated
                                                                                           with the City's public golf course. After covering all of its operating, overhead and
In addition to the revenues raised by the Parking Fund, the FY 2011 budget                 capital costs for nearly thirty years, RedGate began operating in the red in FY
includes a $1.03 million transfer from the General Fund (which includes the City's         2000. In response to financial losses over several years, in May 2006 staff
capital contribution of $53,000 and the City's PILOT of $37,000) to support the            presented a business plan to the Mayor and Council that analyzed the financial
parking enterprise. Staff recommends continuing with a General Fund transfer               condition of the golf course. The business plan focused on achieving the
until parking revenues offset more Parking Fund expenses, which includes the               objective of generating sufficient revenues through fees and charges in order to
debt service on $36 million of bonds issued to support the construction of the             pay for the costs of operations, capital outlay, and infrastructure improvements.
Town Center parking garages. The latest data analyzed reflects that there will be          FY 2011 will be the fifth year of the five-year business plan.
insufficient revenues generated to service this debt, and an annual transfer from
the City’s General Fund will be required over the thirty-year life of the bonds.           Although we have made several changes since the business plan was adopted,
                                                                                           the Fund continues to have a growing deficit estimated at over $1.6 million by the
Stormwater Management Fund                                                                 end of FY 2010. Some of the changes recommended by the business plan that
The Stormwater Management (SWM) Fund accounts for the financial activity                   the City made over the last three years include: transferring $372,500 from the
associated with maintaining existing SWM facilities and constructing new                   General Fund to the RedGate Golf Fund to support capital improvements to the
facilities. In FY 2008, an analysis showed that a stormwater utility fee would be          course, reducing the administrative charge to the General Fund by half
needed to fund Rockville's existing and expanded stormwater, storm drainage                (approximately $540,350 in total), and intensifying overall marketing efforts. In
and water quality programs. Historically, rapid development has funded much of             addition to the changes recommended by the business plan, and in an attempt to
Rockville's stormwater management with fees paid by developers. With few                   increase revenues, the Mayor and Council increased green fees in 2009.
opportunities for new development, other funding sources were needed to cover
new programs, maintain the public stormwater infrastructure, and comply with               Recognizing that the financial situation of the Fund is not improving, the Mayor
regulatory requirements.                                                                   and Council directed staff to research alternative management options available
                                                                                           to RedGate. Pending completion of that research and further direction by the
In FY 2008, the Mayor and Council approved an ordinance to amend the City                  Mayor and Council, FY 2011 will continue with the business plan, which allows for
Code to include a new Stormwater Management Utility Fee. This ordinance                    RedGate’s administrative charge to be reduced by half.
                                                                                     1-9
Conclusion

The City’s current financial situation requires that we continue our responsible
fiscal practices in managing expenditures and revenues. We must make
decisions that are not short-term solutions, but focus on the long-term financial
health of the City. As our revenues remain flat, we must become more efficient or
even cut back on lower priority expenditures in order to maintain our
infrastructure and core services. The adopted budget utilizes available resources
effectively and responsibly. The budget is in line with policy direction set by the
Mayor and Council, including the budget principles approved in December 2009
and February 2010.

The GFOA recognizes the City’s budget document for its excellence as a
communication device, policy document, financial plan, and operations guide. I
hope you find it to be a valuable tool in making the important decisions that will
impact Rockville citizens and the City government throughout the next year. On
behalf of our dedicated City staff, we remain grateful to the community and the
Mayor and Council for the opportunity to serve, and for providing the resources
needed to carry on our mission. We look forward to FY 2011 and the many
challenges and opportunities that lie ahead.

Many City staff contributed to preparing the budget. The many people working
together on its production exemplify the values of teamwork, craftsmanship, and
public service that guide our work throughout the year. The department directors
and their staff contributed significantly to preparing this budget. The entire effort
is lead by the City’s Budget Office, who strive to ensure the City’s finances are
understandable and accessible to the public. We are most grateful to the Mayor
and Council for their continued support and ongoing guidance.

This budget would not have been possible without the leadership and support of
Local 1453, American Federation of State, County, and Municipal Employees
(AFSCME), AFL-CIO, whose officials ably represented its members in amending
and extending an agreement to defer compensation increases to future years.
With the cooperation of AFSCME, the Fraternal Order of Police Lodge 117, and
all administrative employees, we will continue to serve the community without
compromising quality and without resorting to employee layoffs or furloughs.

The economic downturn will impact the City and its residents for at least the next
two fiscal years, and probably longer. Through cost cutting and utilizing a portion
of excess reserves we are able to present a balanced budget with minimal impact
to program and services received by residents. While next year’s outlook remains
bleak, now is the time to position the City for the recovery.

Respectfully,




Scott Ullery
City Manager
                                                                                        1 - 10
                                                   Full Time Equivalent Positions
Changes from FY 2010 Adopted to FY 2011 Adopted                                            Department of Information and Technology:
                                                                                              No change.
From the adopted FY 2010 budget to the adopted FY 2011 budget, (16.3) regular
FTE positions were deleted and 1.0 regular FTE positions were added for a total            Department of Police: decrease of (2.0) FTEs
net decrease of (15.3) FTEs across all funds. Below is the breakdown of                       (1.0) FTE vacant Parking Enforcement Officer position (Parking Fund)
positions deleted, added, and transferred by department for FY 2011.                          deleted.
                                                                                              (1.0) FTE vacant Photo Enforcement Analyst position (Speed Camera Fund)
Department of the Mayor and Council (M&C):                                                    deleted.
   No change.
                                                                                           Department of Public Works: decrease of (8.0) FTEs
Department of the City Attorney (City Attorney):                                              (3.0) FTEs vacant Sanitation Worker positions (Refuse Fund) deleted.
   No change.                                                                                 (1.0) FTEs vacant Sanitation Operator position (Refuse Fund) deleted.
                                                                                              (1.0) FTE vacant Inspection Aide position (General Fund) deleted.
Department of City Manager’s Office (CMO):                                                    (1.0) FTE vacant Civil Engineer II position (General Fund) deleted.
   No change.                                                                                 (1.0) FTE vacant Traffic Signal and Lighting Technician position (General
                                                                                              Fund) deleted.
Department of Community Planning and Development Services (CPDS):                             (1.0) FTE vacant Civil Engineer I position (0.5 Speed Camera Fund and 0.5
decrease of (2.0) FTE                                                                         SWM Fund) deleted.
    (1.0) FTE vacant Planner III position deleted.                                            The Department of Public Works reorganized the Engineering and Contract
    (1.0) FTE vacant Administrative Assistant II position deleted.                            Management divisions. Multiple positions were reallocated across funds to
                                                                                              better align the positions with work being completed. Although there was no
Department of Finance:                                                                        net change in the department’s FTE count due to this reorganization, the
   No change.                                                                                 General, Water, Sewer and Stormwater Funds all experienced increases and
                                                                                              decreases because of these changes.
Department of Human Resources: no net change
   (1.0) FTE vacant Secretary I position deleted.                                          Department of Recreation and Parks: decrease of (3.3) FTEs
   1.0 FTE (new) Loss Control Administrator position added.                                   (0.8) FTE vacant Childcare Staff positions deleted.
                                                                                              (0.5) FTE vacant Clerk II position deleted.
                                                                                              (1.0) FTE vacant Lifeguard II position deleted.
                                                                                              (1.0) FTE vacant Laborer position deleted.




                                                                                  1 - 11
                                             Full Time Equivalent Positions
The charts below list the allocation of regular FTEs and temporary FTEs by             Each regular or temporary City of Rockville position is allotted a full-time
department for FY 2009, FY 2010, and FY 2011. These charts also show the               equivalent (FTE). The FTE associated with each position is then charged against
additions and deletions from the FY 2010 adopted budget to FY 2011 adopted             a fund (or funds) based on the scope of work being performed. Benefits provided
budget.                                                                                with each position are offered on a pro-rata basis based on the FTE count. The
                                                                                       charts below list the regular FTEs and the temporary FTEs by fund.
Regular Positions       FY 2009   FY 2010                           FY 2011
by Department:           Actual   Adopted   Additions   Deletions   Adopted                                         FY 2009      FY 2010       FY 2010      FY 2011
                                                                                       Regular Positions:            Actual      Adopted       Est. Act.    Adopted
Mayor and Council           5.0      3.0          0.0         0.0       3.0
City Attorney              N/A       5.0          0.0         0.0       5.0            General                         411.1        412.8         412.8        404.4
City Manager               29.0     28.0          0.0         0.0      28.0            Water                            38.6         38.8          38.8         39.1

CPDS                       43.6     42.6          0.0         2.0      40.6            Sewer                            17.4         17.1          17.1         17.7

Finance                    30.0     30.0          0.0         0.0      30.0            Refuse                           43.4         39.8          39.8         35.8

Human Resources             8.0     10.0          1.0         1.0      10.0            Parking                           7.4          6.9           6.9          5.9

Info. and Technology       17.5     17.5          0.0         0.0      17.5            Town Center Management            0.0          0.5           0.5          0.5

Police                     94.0     94.0          0.0         2.0      92.0            Stormwater Management            18.4         21.8          21.8         20.5

Public Works              164.0    164.1          0.0         8.0     156.1            RedGate Golf Course               9.8          9.8           9.8          9.8

Recreation and Parks      162.9    160.9          0.0         3.3     157.6            Community Development
                                                                                                                         0.9          0.6           0.6          0.6
                                                                                         Block Grant
Regular FTE Total:        554.0     555.1         1.0        16.3     539.8
                                                                                       Speed Camera                      7.0          7.0           7.0          5.5
                                                                                       Regular FTE Total               554.0        555.1         555.1        539.8
Temporary Positions     FY 2009   FY 2010                           FY 2011
by Department:           Actual   Adopted   Additions   Deletions   Adopted
Mayor and Council                                                                                                   FY 2009      FY 2010      FY 2010      FY 2011
                            0.6       0.2         0.0         0.1       0.1            Temporary Positions:
                                                                                                                     Actual      Adopted      Est. Act.    Adopted
City Attorney              N/A        0.0         0.0         0.0       0.0
                                                                                       General                         87.8          80.4          80.6        81.0
City Manager                0.5       0.3         0.0         0.0       0.3
                                                                                       Water                            0.0           2.0           2.0          2.2
CPDS                        0.9       0.5         0.0         0.4       0.1
                                                                                       Sewer                            0.3           0.0           0.0          0.2
Finance                     0.1       0.0         0.0         0.0       0.0
                                                                                       Refuse                           4.0           4.0           4.0          2.2
Human Resources             0.1       0.1         0.0         0.0       0.1
                                                                                       Stormwater Management            1.8           0.8           0.8          0.3
Info. and Technology        1.0       1.0         0.0         1.0       0.0
                                                                                       RedGate Golf Course              5.7           5.7           5.7          5.7
Police                      1.0       1.0         0.0         0.0       1.0
                                                                                       Special Activities               0.0           0.5           0.5          0.5
Public Works                7.3       7.7         0.4         2.1       6.0
                                                                                       Temporary FTE Total:            99.6          93.4          93.6        92.1
Recreation and Parks       88.1      82.6         1.9         0.0      84.5
Temp. FTE Total            99.6      93.4         2.3         3.6      92.1            Grand Total all FTEs:          653.6         648.5         648.7       631.9


Grand Total all FTEs:     653.6     648.5         3.3        19.9     631.9




                                                                              1 - 12
                                  Full Time Equivalent Positions
                Regular FTEs by Fund FY11
                                              Refuse                                              Staffing Trend FY 2006 - FY 2011
                                                7%                               800.0
                                                  Water
                                                                                 700.0                                653.6    648.5
                                                   7%                                             625.8    629.2                        631.9
                                                                                         608.8
                                                                                 600.0
                                                     SWM
                                                      4%                         500.0                      535.0     554.0    555.1
                                                                                         522.4    535.8                                  539.8
General




                                                                          FTEs
                                                      Sew er
 75%                                                                             400.0
                                                       3%
                                                  Golf                           300.0
                                                  2%                             200.0
                                      Other
                                       2%                                        100.0
                                                                                         86.4     90.0      94.2      99.6     93.4      92.1
                                                                                   0.0
                                                                                         Actual   Actual    Actual   Actual   Adopted   Adopted
                                                                                         FY06     FY07      FY08     FY09      FY10      FY11


          Regular FTEs by Departm ent FY11

                                 Police
                                  17%
                                           CPDS
                                            8%
   R&P
                                                  Finance
   29%
                                                    6%

                                                     CMO
                                                      5%
                                                IT
                                               3%           HR
                                                            2%
     Public Works              M&C        City Attorney
         28%                   1%              1%




                                                                 1 - 13
                                                   Budget Development Process
General — The City Charter requires the City Manager to submit a budget to the                 For FY 2011, the City continued the process to prioritize CIP projects supported
Mayor and Council at least one month before the beginning of each fiscal year. In              by the Capital Projects Fund. Projects were prioritized based on eighteen criteria
addition to the operating budget, a five-year capital improvement plan is                      that included the Mayor and Council vision and the impacts that the capital
presented for the Mayor and Council’s consideration. The Mayor and Council                     projects have on the City’s: 1) facilities and infrastructure, 2) environment and
schedule and publish advance notices of public hearings. The budget is approved                safety, 3) budget and legal provisions, and 4) other. The City Manager used the
in the form of an appropriations ordinance. During the year, the City Manager has              prioritization findings to assist in determining the recommended funding levels for
authority to transfer budgeted amounts between departments within any fund, but                the projects in the FY 2011 – FY 2015 CIP budget. The prioritization process is
changes in the total appropriation level for a given fund can only be enacted by               discussed on page 6 of the CIP.
the Mayor and Council through a budget amendment ordinance. The City
amends the budget throughout the fiscal year as needed.                                        The FY 2011 adopted operating budget and CIP are available on the City’s
                                                                                               Website (www.rockvillemd.gov).
FY 2011 Operating Budget — Starting in October 2009, Budget staff conducted
a review of each department’s base operating budget and all CIP projects. In                   The chart below is a monthly time-line of the major components of the FY 2011
November, established targets and worksheets were distributed to each                          budget development process.
department.
                                                                                                 Formulation of Operating Budget
In December 2009, City Management and Budget staff presented to Mayor and                              and CIP Requests
Council the FY 2011 financial picture, and sought and obtained general direction
and guidance in preparing the FY 2011 Budget.
                                                                                                                                     Executive / Budget
In January 2010, the City Manager held meetings with the senior management                                                             Office Review
team and division heads to discuss priorities for the coming year.

In February 2010, City Management and Budget staff presented the FY 2011                                                                                  Council Review and Adoption
financial picture to the Mayor and Council and obtained general direction and
guidance in preparing the FY 2011 proposed budgets. During February and                         Oct 09      Nov 09      Dec 09       Jan 10     Feb 10    Mar 10    April 10    May 10
March 2010, the budget staff prepared the FY 2011 Proposed Operating Budget
and FY 2011 – FY 2015 Capital Improvements Program Budget for presentation                        Budget Previews:   Presentation     Public Hearings:     Worksessions:         Adoption:
to the Mayor and Council on March 22, 2010. After the budget was presented,                        Dec. 7, 2009      of Proposed:      April 12, 2010      April 19, 2010      May 24, 2010
public hearings were held on April 12, April 26, and May 4, 2010 to solicit citizen                Dec. 14, 2009     Mar. 22, 2010     April 26, 2010      April 27, 2010
responses to the proposed budget.                                                                February 22, 2010                      May 4, 2010         May 3, 2010
                                                                                                                                                            May 4, 2010
In addition to the three public hearings, the Mayor and Council conducted five                                                                             May 10, 2010
worksessions between April 19 and May 10, 2010 to discuss the budget prior to
adoption. On May 24, 2010, the Mayor and Council adopted the budget and
ordinances and resolutions that set the property tax rates and the utility rates.

During June 2010, the budget staff prepared and implemented the FY 2011
Adopted Operating Budget and FY 2011 – FY 2015 Capital Improvements
Program. The adopted budget for FY 2011 takes effect on July 1, 2010.

FY 2011 Capital Improvements Program — In October 2009, the City Manager
solicited requests from departments, neighborhoods, and homeowners
associations for Capital Improvements Program (CIP) projects. Several requests
were received, which can be found on page 14 of the FY 2011 – FY 2015 Capital
Improvements Program budget.

                                                                                      1 - 14
                                                 Mayor and Council Vision 2020
During the Mayor and Council Priorities and Goal Setting Sessions on January                Strong and Distinctive Neighborhoods
15 – 16, 2010 and March 16, 2010 the Rockville Mayor and Council developed
the following ten-year Vision for Rockville, which was adopted on June 21, 2010.            Our attractive neighborhoods retain their distinctive identities and have strong,
                                                                                            energetic leaders. Residents identify with and are proud of their communities,
                                                                                            yet are fully aware of the value of their relationship to the rest of the City. Stable
Preamble                                                                                    residential and commercial property values and a strong income tax base
                                                                                            contribute to supporting excellent municipal services and amenities.
Rockville is thriving and has recovered from the prolonged recession. The
recession’s impact on City revenues resulted in a renewed appreciation for the              Zoning standards reinforce neighborhood identity and property values. A wide
role of business as a provider of services, a revenue source, and a partner in              variety of housing choices are available among Rockville’s diverse
community development and activities. It also provided an incentive to transform            neighborhoods. Mixed-use neighborhoods are established in the urban core.
already good City budgeting, planning, and communication processes into                     Rockville’s traditional neighborhoods are buffered from the urban core by
superb ones. Through a community-wide public dialogue and review, the City                  effective transition zones that encourage positive redevelopment with sensible
Charter was amended to provide a form of government suitable for a city of                  height and mass parameters. Neighborhoods are well connected to each other,
70,000 residents.                                                                           adjacent commercial centers, and the urban core. Bicycle and pedestrian paths
                                                                                            provide connections where streets cannot. These paths are safe, well lit, and
While Rockville is a regional economic engine, it stays true to its core values of          have appropriate and helpful signage throughout the system.
environmental leadership and preserving neighborhoods and historical
resources. The City has adopted a new Zoning Ordinance and Master Plan to                   Neighborhoods are safe, well policed, and houses are well maintained. Code
reflect changing priorities and a better understanding and working relationship             enforcement is strict but is needed in relatively few situations. Together these
among all stakeholders.                                                                     policies reinforce the efforts of neighborhood leaders in maintaining a quality
                                                                                            living environment.
City leaders recognize Rockville as an integral part of the greater Washington,
D.C. region, and not an island unto itself. Rockville faces tremendous                      Every neighborhood has recreational choices through local parks and recreation
                                                         1                 2
development pressures from its borders to the south and northwest , which                   programs, and is served by high-quality public schools. Also, an array of private
strain the City’s roads and schools. Rockville accepts its responsibility to absorb         schools serves a large minority of the City’s children.
                                                                        3
and manage its share of the area’s considerable population growth. A strong
urban core is considered essential to absorbing this growth and protecting                  The City values its seniors, providing services to this fast growing population and
neighborhoods. People are attracted to live and work in Rockville in increasing             making it easier for seniors to age in place. Rockville recognizes that in order for
numbers because of the excellent municipal services and education system, the               both seniors and young professionals to live in their own homes, it is necessary
City’s success with balancing competing goals and engaging with its citizens and            to support the renovation and upkeep of existing homes, as well as permit a
businesses, as well as the considerable cultural, recreational, entertainment,              variety of housing types.
dining and shopping choices that are found here.
                                                                                            Urban Sensitivity
Rockville is the governmental center of Montgomery County with a significant
county, state, and federal presence. These higher levels of government have an              The City’s urban core is concentrated in Town Center and radiates south and
enhanced respect for City policies and processes due to the coordinated and                 north along Maryland Route 355, a thriving, pedestrian-friendly boulevard. The
proactive approach of City and community leaders and residents.                             bulk of the City’s new housing is located within mixed-use communities in this
                                                                                            urban setting, and there are options for long-underserved young professionals,
The vision builds on the following seven themes: Strong and Distinctive                     young families, “empty nesters” and non-traditional households. Phase II of
Neighborhoods; Urban Sensitivity; Engaged Governance; Business Friendly;                    Town Center development north of Beall Avenue was completed a few years
Multimodal Transportation; Exceptional City Services and Amenities; and Quality             ago, as were mixed-use buildings along East Middle Lane.
Environment. These themes have equal importance and Mayor and Council view
them as mutually compatible. Budget priorities are explicitly not part of the
vision; these are best addressed in the normal budget process.


                                                                                      2-1
                                                  Mayor and Council Vision 2020
Further south, Rockville Pike is transitioning to a denser and more pedestrian,              Development processes are transparent and there is ample and early opportunity
bicycle and mass transit-friendly environment. To the north, the commercial                  for collaborative neighborhood input. The College Gardens Plaza is a sterling
segments along Hungerford Drive are revitalized and thriving, contributing to the            example of how a commercial owner and developer work with the community to
City’s tax base and to Rockville’s reputation as a destination. To the east,                 define a highly profitable and well-accepted commercial and mixed-use project.
properties along Veirs Mill Road have redeveloped in a manner consistent with
the Twinbrook Neighborhood Plan.                                                             Business Friendly

Commercial entities, residential developers, Montgomery College, and county                  The City’s Master Plan and Zoning Ordinance are clearly written and provide
and state government drive the development of the urban core. The development                attractive alternatives for continued business investment. Opportunities for and
is accomplished with neighborhood input resulting in optimum outcomes.                       limits on development are clear and reasonable. The City has a longstanding
Stonestreet Avenue has redeveloped with mixed uses.                                          economic development unit, and possesses economic and tax-impact analysis
                                                                                             capabilities so that it knows how the zoning ordinance and permitting processes
Rockville is a major regional cultural center, and is recognized as such regionally,         impact business and the tax base.
nationally, and internationally. Its entertainment and performance arts districts
are well known throughout the area and contribute to Rockville’s reputation as a             Permits and approval processes are clear and are executed efficiently. The
“destination.” There is a lively nightlife in the urban core and in some of the              business community is active and highly respected, and business people are fully
mixed-use centers. New urban cultural and civic amenities continue to emerge,                and positively involved in the City. The City’s tax base is stable, reasonable, and
and complement VisArts, the library, and Town Square. These are primarily                    slowly increasing. Property tax rates are defensible and competitive.
private, but a few, such as the new Science Center, involve public/private
partnerships.                                                                                Rockville has programs to actively attract and grow new small to medium size
                                                                                             businesses. The business incubator in the Arts and Innovation Center continues
Historic preservation processes and standards have been refined, and many                    to have waiting lists for the high-tech businesses in biotechnology, computing,
historic properties have been preserved through thoughtful and creative re-use.              and services. Businesses locate here because Rockville is a cultural,
Peerless Rockville continues to be a strong and visible proponent for protecting             recreational, educational and entertainment leader, a transportation hub, and a
Rockville’s history.                                                                         great place to raise a family. Rockville boasts a highly educated and motivated
                                                                                             workforce, which includes many young professionals and members of the
Engaged Governance                                                                           “creative class.”

Through extensive public dialogue and review, the City Charter was revised                   Multimodal Transportation
several years ago. A high percentage of voters understand and act on the
importance of participating in the electoral process. The community actively                 Improvements to the transportation infrastructure over the past decade have
engages with City Hall and the Mayor and Council, thereby positively affecting the           mitigated the impact of increased traffic. More viable transportation options exist
City’s responsiveness. Communication between the City government and the                     throughout the City connecting Rockville neighborhoods and Rockville to the
citizenry is effective and runs both ways.                                                   wider metropolitan area, including bus routes, trolley lines, the Corridor Cities
                                                                                             Transitway, and expanded METRO and MARC service. Rockville is recognized
The City enjoys productive and respectful relationships with all levels of                   as a “Pedestrian First City.”
government, including other Maryland municipalities and Washington-area
communities, and public institutions. For example, Montgomery County has been                Pedestrian safety is a perennial Mayor and Council priority. Over the years
rebuilding its governmental center throughout Town Center, contributing to                   pedestrians have been better accommodated through Zoning Ordinance
economic growth and vitality for the entire urban core. The Montgomery College               provisions, improved pedestrian infrastructure, and pedestrian and driver
campus is now fully integrated into the City’s bike and pedestrian pathways.                 education and outreach. The City continues to rigorously enforce speed limits
                                                                                             and red light violations, and provides excellent pedestrian crossing infrastructure.
Relationships between Mayor and Council and City staff run smoothly and are
informed by well-understood and respected delineation of duties and
responsibilities. The budget process is clear, and the growth of the government is
constrained.
                                                                                       2-2
                                                   Mayor and Council Vision 2020
The car is still the predominant mode of transportation, but residents are more                Rockville continues to be the regional leader in Storm Water Management and
willing to use transit, cycle, or walk. As areas of the City are redeveloped, it has           energy conservation, not only for City facilities, but also for residential and
become easier to abandon cars for daily commutes. Mixed-use communities                        commercial properties. It does this through education and innovative programs,
facilitate this, and many residents live either near their work places or in proximity         incentives, and regulation where appropriate.
to commuter transportation hubs. Rockville leads the nation in the adoption of
energy-efficient cars. Many residents work from home through high-speed                        An energy conservation task force established in the early part of the decade
Internet services blanketing the City.                                                         developed federal and state grant opportunities that persuaded residents to
                                                                                               aggressively adopt energy-conserving ways of life because they saw that this was
The rehabilitated and renamed Rockville Town-Center Metro platform now                         in their self interest. The City is in the process of replacing its entire vehicle fleet
extends over Park Street, and crossing 355 on foot has become a comfortable                    with alternative energy-powered vehicles.
and safe experience.
                                                                                               The City addresses its planning and development issues by bringing all parties to
Exceptional City Services and Amenities                                                        the table from the outset, recognizing that sustainability has economic and
                                                                                               environmental components that must work together. Development standards are
City services and amenities continue to be exceptional. The City provides high-                high but not unreasonable, and are not a disincentive to development.
quality services including snow and leaf removal, well-maintained streets, and
refuse and recycling services. The Police moved to their new headquarters in
Town Center several years ago and continue to provide outstanding service to                   Endnotes:
the Rockville community.                                                                       1
                                                                                                Base Realignment And Closure (BRAC) that results in more development in
                                                                                               Bethesda. Also the County’s White Flint Sector Plan just south of Rockville.
The Recreation and Parks program remains the envy of the mid-Atlantic region.
                                                                                               2
RedGate is still a jewel. There is a remarkable Science Center focused on the                    The Great Seneca Science Corridor development spearheaded by Johns
biotechnology sector. Reliable and extremely fast Wi-Fi is available everywhere in             Hopkins University.
the City.                                                                                      3
                                                                                                 Council of Governments report of 2010 predicts two-million person population
The City’s longstanding efforts to upgrade its water system, including the 20-year             growth in the Washington, DC region between 2010 and 2050.
project to replace worn-out water mains in the older parts of town, are proceeding
on schedule and within budget. Rockville continues advancing inspection and
preventive maintenance methods and technologies for its water, sewer, and
storm water infrastructure. As a result, the incidences of water main breaks,
sewer backups, and spot flooding have decreased dramatically.

Rockville continues to apply reliable advanced information technology to improve
the quality, cost, and speed of providing municipal services.

Quality Environment

Rockville is a “Green City” in all areas. Cities around the country have taken
notice of the fact that Rockville has found a way to be both green and
economically attractive. Incentives and education have effectively achieved the
convergence of individual self-interest and environmentally sensitive behavior.
Rockville has enticed a number of new “green” businesses to open their doors
and provide employment in the City.



                                                                                         2-3
                                                  Financial Management Policies
Statement of Purpose                                                                          OPERATING BUDGET POLICIES:
The financial integrity of our City government is of utmost importance. To                    At least one month before the preparation of the proposed annual budget, the
discuss, write, and adopt a set of financial policies is a key element to                     City Manager will meet with the Mayor and Council members to review and
maintaining this integrity. These financial management policies are designed to               deliberate all policy guidelines that may affect the proposed budget.
ensure the fiscal stability of the City of Rockville and to guide the development
and administration of the annual operating and capital budgets, as well as the                    1.   The budget is approved in the form of an appropriations ordinance after
debt program.                                                                                          the Mayor and Council have conducted at least one advertised public
                                                                                                       hearing.
Written, adopted financial policies have many benefits, such as assisting the
Mayor and Council and City Manager in the financial management of the City,                       2.   The operating budget and CIP together shall serve as the annual
saving time and energy when discussing financial matters, promoting public                             financial plan for the City. They will serve as the policy documents of the
confidence, and providing continuity over time as Mayor and Council and staff                          Mayor and Council for implementing Council visions, goals and
members change. While these policies will be amended periodically, they will                           objectives. The budget shall provide staff with the resources necessary
provide the foundation and framework for many of the issues and decisions                              to accomplish the Mayor and Council’s determined service levels.
facing the City. They will promote wise and prudent financial management,                         3.   The City Manager shall annually prepare and present a proposed
provide the foundation for adequate funding of services desired by the public, and                     operating budget to the Mayor and Council at least two months before
help make the City more financially stable, efficient, and effective.                                  the beginning of each fiscal year; and Mayor and Council will adopt said
                                                                                                       budget no later than May 31 of each year. Funds may not be expended
Objectives                                                                                             or encumbered for the following fiscal year until the budget has been
                                                                                                       adopted by the Mayor and Council.
    1.   Assist the Mayor and Council and City management by providing
         accurate and timely information on financial conditions pertinent to City                4.   The City defines a balanced budget as a budget that has operating
         operations.                                                                                   revenues equal to operating expenditures. It is the City’s policy to fund
                                                                                                       current year operating expenditures with current year revenues,
    2.   Provide sound financial principles with which to guide the important                          inclusive of debt service. General Fund expenditures may exceed
         decisions of the Mayor and Council and management, which have                                 revenues in a given year only when the additional spending is funded by
         significant fiscal impact.                                                                    beginning fund balance and only for CIP expenditures or other one-time
    3.   Set forth operational principles that minimize the cost of government                         or non-recurring expenditures, as authorized by the Mayor and Council.
         and financial risk, to the extent consistent with services desired by the                5.   Each department and division prepares its own budget for review by the
         public.                                                                                       City Manager. Budget accountability rests primarily with each
    4.   Enhance the policy-making ability of the Mayor and Council by providing                       department. The basic format of the budget shall identify programs
         accurate information on program costs.                                                        within organizational structures. Programs are defined as specific
    5.   Ensure the legal use of all City funds through a sound financial system                       services provided to the public, other departments or other
         and strong internal controls.                                                                 organizations.
    6.   Employ revenue policies that diversify revenue sources, distribute the                   6.   The Operating Budget is adopted at the fund level. During the year, it is
         costs of municipal services fairly, and provide adequate funds to operate                     the responsibility of the City Manager, Department Directors, and the
         desired programs.                                                                             Budget and Finance Manager to administer the budget. The legal
                                                                                                       control, which the budget ordinance establishes, uses Generally
                                                                                                       Accepted Accounting Principles (GAAP).
In order to meet these objectives, the City’s policies are divided into eight general
categories for ease of reference. These categories include: 1) Operating Budget                   7.   As a management policy, budgetary control is maintained in the
Policies, 2) Capital Improvement Program (CIP) Policies, 3) Revenue and                                General, Special Revenue, and Enterprise Funds at the program level
Expenditure Policies, 4) Reserve Policies, 5) Debt Management Policies, 6) Cash                        by the encumbrance of estimated purchase amounts prior to the release
Management/Investment Policies, 7) Accounting, Auditing, and Financial                                 of purchase orders to vendors. Purchase orders that result in overruns
Reporting Policies, 8) Productivity Policies. It is recommended that all policies                      of balances are not processed until sufficient appropriations are made
included in this document be adhered to.                                                               available through approved intrafund transfers. Encumbered amounts at
                                                                                        2-4
                                                Financial Management Policies
        year-end are recorded as a reservation of fund balance and are                    Fund Structure:
        reflected as an adjustment to the ensuing year's budget.
    8. A five-year projection of revenues and expenditures for the General,                  1.   The accounts of the City are organized into funds. The operations of
        Special Revenue, and Enterprise Funds is prepared each fiscal year to                     each fund are accounted for with a separate set of self-balancing
        provide strategic perspective to each annual budget process.                              accounts that comprise its assets, liabilities, fund equity, revenue, and
                                                                                                  expenditures (or expenses, as appropriate).
    9. All appropriations shall lapse at the end of the budget year if not
        expended or encumbered.                                                              2.   Government resources are allocated to and accounted for in individual
                                                                                                  funds based on the purposes for which they are to be expended and the
    10. Any year-end operating surpluses will revert to fund balances for use in
                                                                                                  means by which spending activities are controlled. The City uses
        maintaining reserve levels set by policy (see policy on reserves) and the
                                                                                                  governmental funds and enterprise funds. Governmental funds are
        balance will be available for pay-go capital projects and/or one time
                                                                                                  those through which most governmental functions of the City are
        capital outlays.
                                                                                                  financed. The acquisition, use, and balance of the City’s expendable
    11. The City Manager will submit budgetary reports to the Mayor and                           financial resources and the related liabilities (except for those accounted
        Council comparing actual revenues and expenditures with budgeted                          for in the enterprise funds) are accounted for through governmental
        amounts quarterly.                                                                        funds.
                                                                                             3.   The City’s governmental funds are the General Fund, the Special
Budget Transfers:                                                                                 Revenue Funds, the Capital Projects Fund, and the Debt Service Fund.
                                                                                                       The General Fund is the general operating fund of the City. It is
The City Manager has the authority to transfer budgeted amounts between                                used to account for all financial resources except those required to
departments within any fund, but changes in the total appropriation level for any                      be accounted for in another fund.
given fund can only be enacted by the Mayor and Council through an amendment
to the appropriations ordinance.                                                                       The Special Revenue Funds are used to account for the proceeds
                                                                                                       of specific revenue sources (other than major capital projects) that
                                                                                                       are restricted by legal and regulatory provisions or budgeted
    1.   All budget transfers must receive approval by the Department Director,                        contributions from outside sources to finance specific activities. The
         and Budget and Finance Manager regardless of the budget transfer                              City’s Special Revenue Funds are the Special Activities Fund, the
         amount. In addition, any budget transfer over $50,000 requires City                           Community Development Block Grant Fund, Town Center
         Manager approval.                                                                             Management Fund and the Speed Camera Fund.
    2.   City Manager approval is required for transfers from one department to                        The Capital Projects Fund is used to account for financial resources
         another.                                                                                      used for the acquisition or construction of major capital facilities and
    3.   Approval of the budget transfer must be obtained prior to requisition,                        general capital construction, including: streets, parks, and public
         encumbrance or expenditure of funds taking place.                                             buildings (other than those financed by enterprise funds).
                                                                                                       The Debt Service Fund, which includes special assessments, is
Interfund Transfers and Loans:                                                                         used to account for the accumulation of resources for, and the
                                                                                                       payment of, general long-term debt principal, interest, and related
    1.   Any interfund transfers between funds for operating purposes can only                         costs.
         be made by the Chief Financial Officer with City Manager approval in                4.   The enterprise funds are the Water Fund, the Sewer Fund, the Refuse
         accordance with the adopted budget.                                                      Fund, the Parking Fund, the Stormwater Management Fund, and the
    2.   These operating transfers, under which financial resources are                           RedGate Golf Course Fund.
         transferred from one fund to another, are distinctly different from                 5.   Creation of new funds should be based on the following criteria:
         interfund borrowings, which are usually made for temporary cash flow
         reasons, and are not intended to result in a transfer of financial
                                                                                                    I.      The revenue source is ongoing; i.e., more than one fiscal year.
         resources by the end of the fiscal year.
                                                                                                    II.     The amounts to be recorded are material.
    3.   Interfund transfers result in a change in fund equity; interfund                           III.    Interest income is required to be allocated.
         borrowings do not, as the intent is to repay the loan in the near term.
                                                                                    2-5
                                                  Financial Management Policies
          IV.     The amounts are specifically designated.                                    CAPITAL IMPROVEMENT PROGRAM (CIP) POLICIES:
          V.      There is not another fund that can be used to account for the
                  revenue source.                                                             With the operating budget, the City Manager submits a CIP to the Mayor and
          VI.     There are special circumstances that have led management to                 Council. This document provides for improvements to the City’s public facilities
                  create a separate fund.                                                     for the ensuing fiscal year and four years thereafter, and forms part of the City’s
          VII.    If the State or Federal government requires a separate fund to              financial plan. The first year of the plan establishes a capital budget for the new
                  account for a particular source of revenue then such a fund can             fiscal year. The remaining four years serve as a guide for use in determining
                  and must be created.                                                        probable future debt issuance needs and operating cost impacts. The Capital
          VIII.   It is a requirement of GAAP to establish the fund.                          Budget is adopted at the fund level. CIP expenditures are accounted for in the
                                                                                              Capital Projects Fund or the appropriate enterprise funds and are funded by a
Basis of Budgeting:                                                                           variety of sources. The City strives to maintain a high reliance on “pay-go”
                                                                                              financing for its capital improvements in order to maintain debt within prudent
     1. Budgets for governmental and enterprise (or proprietary) funds are                    limits, and to ensure that the rates charged in the enterprise funds are
        adopted on a basis consistent with Generally Accepted Accounting                      competitive with those in the surrounding area. For projects to be included within
        Principles. Accordingly, all governmental fund budgets are presented on               the CIP, they should normally be eligible for debt financing, and have a defined
        the modified accrual basis of accounting. Under this method of                        beginning and end, as differentiated from ongoing programs in the operating
        accounting, revenue and other governmental fund resources are                         budget.
        recognized in the accounting period in which they become susceptible to
        accrual – that is, when they become both “measurable and available” to                To qualify as a CIP project, one of the following six criteria must be met:
        finance current operating expenditures for the fiscal period.
                                                                                                         I.      The acquisition of land for a public purpose.
     2. In applying the susceptible to accrual concept to real and personal                              II.     The construction of a significant facility, i.e. a building or road,
        property tax revenue recognition, “available” means property tax                                         or the addition to or extension of an existing facility.
        revenue is recognized currently if levied before the fiscal year end and                          III.   Nonrecurring rehabilitation or major repair to all or part of a
        collected by intermediaries within 60 days after the fiscal year end. Utility                            facility, such as infrequent repairs that are not considered to be
        and franchise fees, licenses and permits, fines and forfeitures, charges                                 recurring maintenance, provided the total cost per fiscal year is
        for services, and miscellaneous revenue (except investment earnings)                                     more than $100,000.
        are recorded as revenue when cash is received because they are                                    IV.    Any specific design work related to an individual project falling
        generally not measurable until actually received. Investment earnings                                    within the above three categories.
        are recorded as earned since they are both measurable and available.                              V.     Any long-term project funded through a grant where the
     3. For grant revenue such as the Community Development Block Grant                                          establishment of a CIP project is a condition of the grant,
        (CDBG) program, which is dependent upon expenditures by the City,                                        regardless of the amount of funding per fiscal year.
        revenue is accrued when the related expenditures are incurred.                                    VI.    A significant one-time investment in tangible goods of any
        Expenditures are generally recognized under the modified accrual basis                                   nature, the benefit of which will accrue over a multi-year period
        of accounting when the related fund liability is incurred. An exception to                               such as a new phone system or vehicle acquisitions over
        this general rule is principal and interest on general long-term debt                                    $100,000.
        which are recognized when due.                                                            1.   Annually, a five-year Capital Improvements Program (CIP) plan will be
     4. The enterprise fund budgets are presented on the full accrual basis of                         developed analyzing all anticipated capital expenditures by year and
        accounting. Under this method of accounting, revenue is recognized                             identifying associated funding sources. The plan will also contain
        when earned and expenses are recognized when they are incurred. For                            projections of how the City will perform over the five-year period in
        example, earned but unbilled utility revenues are accrued and reported                         relation to the fiscal policies that refer to debt ratios.
        in the financial statements the same way they are incorporated within                     2.   The first year of the five-year (CIP) and any unspent funds from prior
        the operating budget. Enterprise fund capital purchases are budgeted in                        years will be appropriated as part of the annual budget process. The
        the operating budget and recorded as expenses during the year; at                              CIP will be appropriated by fund. At least semi-annually, the City
        year-end, they are capitalized for financial statement purposes.                               Manager will notify the Council of any transfers between projects within
                                                                                                       a fund.
                                                                                        2-6
                                                Financial Management Policies
  3.   The City will maintain a Capital Projects Monitoring Committee                       6.  On an annual basis, the City will set fees and rates for the enterprise
       composed of City staff, which will meet not less than once every six                     funds at levels which fully cover total direct and indirect operating costs,
       months to review the progress on all outstanding projects as well as to                  and all capital outlay and debt service, except where the City is not the
       revise spending projections. Each CIP project will have a project                        sole provider of the service and competitive rates must be taken into
       manager who will prepare the project proposal sheet, ensure that project                 consideration. In these instances, fees and rates must at least cover all
       is completed on schedule, authorize all project expenditures, and ensure                 direct and indirect operating expenses.
       that all regulations and laws are observed. Project managers will be                 7. The City shall actively pursue Federal, State, County and other grant
       responsible for reporting project status to the committee.                               opportunities when deemed appropriate. Before accepting the grant, the
  4.   If new project appropriation needs are identified at an interim period                   City shall thoroughly consider the implications in terms of ongoing
       during the fiscal year, at the fund level, the appropriations ordinance will             obligations, indirect costs and matching requirements in connection with
       be utilized to provide formal budgetary authority for the increase. Any                  the grant.
       significant impact resulting from the change on the overall CIP and on               8. Gifts, bequests and donations will be evaluated to determine what, if
       the debt ratios will be indicated at that time.                                          any, obligations are to be placed upon the City. Gifts, bequests and/or
  5.   The City shall actively pursue funding, other than borrowing, from other                 donations shall be used solely for the purpose intended by the donor.
       levels of government or from private sources for all projects for the CIP            9. General Fund revenues in an amount of $20,000 annually are to be set
       where practical to do so.                                                                aside in accordance with resolution 20-85 that are dedicated to the
  6.   Capital Projects shall be prioritized according to goals set by the Mayor                upkeep and furnishing of Glenview Mansion. $20,000 is the maximum
       and Council.                                                                             amount of General Fund revenue to set aside. Expenditures can only be
  7.   Unexpended project appropriations may be transferred to other projects                   authorized by the Director of Recreation and Parks as recommended by
       within the same funding source with the approval of the City Manager.                    the Glenview Mansion Subcommittee.
  8.   Each year, a closing resolution will be submitted to the Mayor and                   10. An amount equal to one percent of the City’s costs for capital projects
       Council to obtain formal authorization to close completed capital                        involving the construction of, or major improvements to, buildings, parks
       projects. The unexpended appropriations for these projects will be                       and other public structures is to be transferred annually from the
       returned to the fund from which the appropriations were made. A report                   General Fund to the Art in Public Architecture program in support of
       showing the amounts budgeted, expended, transferred and returning to                     ordinance 3-04, pending appropriation by the Mayor and Council.
       fund balance shall be provided.                                                      11. An amount equal to $1 per capita is to be transferred annually from the
                                                                                                General Fund to the Art in Public Places program pending appropriation
                                                                                                by the Mayor and Council.
REVENUE AND EXPENDITURE POLICIES:
  1.   The City will strive to develop and maintain a diversified and stable
       revenue stream to avoid becoming overly dependent on any single type
       of revenue, to minimize the effects of economic fluctuations on revenues
       and ensure its ability to provide for ongoing services.
  2.   Budgeted revenues shall be estimated conservatively using accepted
       standards and estimates provided by the State, County and other
       governmental agencies when available.
  3.   Revenue from “one-time” or limited duration sources will not be used to
       balance the City’s operating budget.
  4.   As appropriate within the marketing of the recreation programs, higher
       non-resident fees may be charged and priority registration will be given
       to Rockville residents.
  5.   Restricted revenue shall only be used for the purposes legally
       permissible and in a fiscally responsible manner.

                                                                                      2-7
                                                  Financial Management Policies
User Fee Cost Recovery Goals:                                                                Basic Services, Parks and Facilities:

Fees for services will be reviewed and updated on an ongoing basis to ensure                 These services include operation and maintenance, open space and recreation
that they keep pace with inflation. In addition, fees need to be updated for                 facilities, neighborhood and Citywide parks, greenways, trails, right-of-way islands
changes in methods or levels of service delivery to ensure that they are                     and landscaping including street trees, playgrounds, non-reservation amenities
appropriate and equitable for all users.                                                     and other similar public facilities, maintenance operations facilities, as well as
                                                                                             overall department administrative activities. These services primarily serve to
In order to implement this goal, a comprehensive analysis of City costs and fees             support individual and small-group non-reserved/non-consumptive/non facility-
should be undertaken at least every five years. In the interim, fees will be                 based amenities and recreation activities.
adjusted by annual changes in the Consumer Price Index (CPI). Fees may be
adjusted during this interim period based on supplemental analysis whenever                  No cost recovery is associated with the following functions. These services are
there have been significant changes in the method, or level of cost of service               provided to the community with funds derived from tax revenues.
delivery. General concepts to be followed are:
                                                                                             These activities include but are not limited to:
         Revenues should not exceed the reasonable cost of providing the
         service.                                                                                     Parks
         Cost recovery goals should be based on the total cost of delivering the                      Skate Park
         service, including direct costs, indirect costs, departmental                                Hiking
         administration costs, and organization-wide support costs such as                            Playgrounds
         accounting, personnel, IT, insurance etc.                                                    Picnic areas
         The method of assessing and collecting fees should be as simple as                           Fishing
         possible in order to reduce the administrative cost of collection.                           Trails
         Rate structures should be sensitive to the “market” for similar services                     Bike paths
         as well as to smaller, infrequent users of the service.                                      Right-of-way landscaping
                                                                                                      Facility landscaping
Development Review Programs:                                                                          Nature observation
                                                                                                      Urban forestry maintenance
Services under this category include Planning, Building and Safety, and                               Trail and pathway activities
Engineering. Cost recovery goals for these services in most instances should be                       Outdoor courts
100 percent. However, in charging at this level, the City needs to clearly establish                  Informal games
and articulate standards for its performance in reviewing developer applications                      Undesignated play areas
to ensure that there is “value for cost.”                                                             City uses for activities, meetings, etc. with no associated revenue
                                                                                                      Dog Park
Recreation and Park Programs:
                                                                                             Community Benefit – Core Programs, Services and Facilities:
Fees are reviewed annually by the Recreation and Parks Advisory Board. The
fees that fall into this category are user fees of public recreation facilities and          These services include core or basic recreation programs, activities and events
programs, rental fees for use of public grounds and facilities, admission fees for           which utilize parks, recreation facilities and other public spaces, providing
public events, special service fees for extraordinary items, vendor fees for the             benefits to the entire community or a large portion thereof, are not routinely
privilege of selling goods and services on public property, and development                  provided by the private sector and are partially supported by fees and charges.
review fees associated with the Forest and Tree Preservation ordinance. In                   These are considered to provide a baseline level of service and can be
addition to these fees, grants and other financial contributions from businesses             considered to enhance the quality of life for Rockville residents.
and other levels of government support recreation and parks programs.
                                                                                             Community Benefit programs and facility uses are expected to recover
The level of cost recovery is based on different service levels provided                     approximately 25 percent of direct costs from fees, sponsorships and grants.
throughout the community as follows:                                                         Supplemental funding is provided via tax dollars.
                                                                                       2-8
                                                    Financial Management Policies
These activities include but are not limited to:                                                           Summer Playgrounds
                                                                                                           Senior citizen recreation programs
         Civic Association/HOA uses of neighborhood community centers                                      Senior citizen sports and fitness programs
         Drop-in use of facilities such as Civic Center, recreation centers,                               Concert Band, Community Chorus, RRYO, Civic Ballet
         community centers, Senior Center, Nature Center                                                   Resident Companies at F. Scott Fitzgerald Theater
         Citywide special events including Memorial Day Parade and
         Independence Day, and Town Center Festivals                                              Individual Benefit Services:
         At-risk youth programs
         Senior Social Services                                                                   These services are defined as those products/processes for which benefits
         Basic after-school programs                                                              accrue almost entirely to the individual, group or organizational
         Senior transportation services                                                           participant/consumer. They may be available to the entire city population or
         Outdoor performing arts series                                                           beyond, but substantial limitations on space, time consumption and cost have the
         Community special events                                                                 effect of restricting use. The private sector can supply these services or they are
         Art galleries                                                                            provided through public/private partnerships. Due to “cost of supply” factors
         Farmers’ Market                                                                          these services are required to fully recoup direct costs, up to 100 percent of
         Therapeutic recreation programs                                                          indirect costs, and in some cases a pro-rata share of allocated costs. Fees are
         Grant supported programs                                                                 often established based on the appropriate local market demand. Tax supported
         Teen social clubs and dances                                                             funding is minimal.
         Seasonal programs and events
                                                                                                  These activities include but are not limited to:
Community/Individual Benefit Services:
                                                                                                           Fitness facilities within recreation centers, Rockville Swim and Fitness
These services provide benefits that accrue both to the community at large as                              Center, Senior Center, etc.
well as to the individual served. They are available to all; however, space, time,                         Licensed childcare programs
consumptive use, cost of supply and other factors may limit or preclude                                    Intermediate and advanced skill development activities for youth and
participation. On occasion the private sector, in particular non-profits, may offer                        adults
some of these services. Due to the limitations listed above and especially to                              Trips and tours – all ages
“cost of supply” circumstances, these services have been designated to recover a                           Outdoor adventure activities
substantial percentage of direct and indirect costs.            In some special                            Summer camps – all types
circumstances, full cost recovery may be warranted.                                                        Advanced or select-level team sports for youth and adults
                                                                                                           Private use/rentals of City facilities
Community/Individual Benefit programs and facility uses are expected to recover                            Retail sales/concessions
between 25 percent and 100 percent of direct costs and up to 25 percent of
indirect costs. Supplemental funding is provided as necessary and appropriate
with tax dollars.

These activities include but are not limited to:

         Introductory or basic skill level activities of all types for all ages
         Swim and Fitness Center facility and program use (memberships, daily
         admissions, classes, swim team, etc.)
         Citywide    special    events      –      Hometown        Holidays     concerts,
         Eggstravaganza, car show, road races
         Adult sports leagues
         Youth sports leagues, including partner non-profit leagues
         Recreation/Community center programs and rentals
                                                                                            2-9
                                                 Financial Management Policies
RESERVE POLICIES:                                                                             Debt Service Fund:

The City utilizes a variety of funds for recording the revenue and expenditures of            The City will maintain a minimum fund balance equal to the average annual
the City. At each fiscal year end, operating surpluses that revert to fund balance            outstanding principal on the City’s debt service schedule.
over time constitute available reserves of the City.

General Fund:                                                                                 DEBT MANAGEMENT POLICIES:
    1.   The City will maintain an unreserved General Fund fund balance at a                      1.  Debt management will provide for the protection of bond rating, the
         level not less than 15 percent of annual General Fund revenue. The                           maintenance of adequate debt service reserves, compliance with debt
         purpose of this unreserved balance is to alleviate significant                               covenant provisions and appropriate disclosure to investors,
         unanticipated budget shortfalls and to ensure the orderly provisions of                      underwriters and rating agencies.
         services to residents. This is the minimum level necessary to maintain
                                                                                                  2. The term of any City debt issue, including lease-purchases, shall not
         the City’s credit worthiness and maintain adequate cash flows. Use of
                                                                                                      exceed the useful life of the assets being acquired by the debt issue.
         funds below the 15 percent required level must be approved by specific
         action of the Mayor and Council.                                                         3. All debt issuance shall comply with Federal, State and City charter
                                                                                                      requirements and adhere to Federal arbitrage regulations.
    2.   To the extent that the unreserved General Fund fund balance exceeds
         the target, the City may draw upon the fund balance to provide pay-go                    4. The City shall maintain an ongoing performance monitoring system of
         financing for capital projects or for other one-time capital items.                          the various outstanding bond indebtedness issues and utilize this
                                                                                                      monitoring system as a performance criterion for the administration of
    3.   The Mayor and Council may designate parts of the available fund
                                                                                                      the City’s outstanding indebtedness. This is particularly important as
         balance that would represent tentative management plans rather than
                                                                                                      funds borrowed for a project today are not available to fund other
         actual restrictions on the use of resources.
                                                                                                      projects tomorrow and funds committed for debt service payments today
                                                                                                      are not available to fund operations in the future.
General Fund Contingency Account:
                                                                                                  5. The City will maintain good, ongoing communication with bond rating
A contingency account equal to a maximum of 1 percent of the City’s General                           agencies about its financial condition. The City will follow a policy of full
Fund budgeted appropriations will be maintained annually in the non-                                  disclosure on every financial report and bond prospectus (Official
departmental budget. This account will be available for unanticipated,                                Statement).
unbudgeted expenditures of a non-recurring nature and/or to meet unexpected                       6. Accompanying each debt issue will be an assessment of the City’s
cost increases that require City Manager approval. All spending from the                              capacity to repay the debt. The assessment will address the effects on
contingency account shall be reported to the Mayor and Council quarterly.                             the current operating budget, as well as identify the resources that will
                                                                                                      be utilized to repay the debt.
Enterprise Funds:                                                                                 7. Long-term borrowing will not be used to finance current operations or
                                                                                                      normal maintenance and will only be considered for significant capital
The City will maintain as reserves working capital balances of 90 days of                             and infrastructure improvements.
operating expenses. In addition, the water and sewer funds will maintain a repair,                8. The City will try to keep the average maturity of general obligation bonds
renewal, and replacement reserve of a maximum of 1 percent of the book value                          at or below twenty years.
of assets.                                                                                        9. The City will generally conduct financings on a competitive basis.
                                                                                                      However, negotiated financings may be used due to market volatility or
The City’s refuse fund will maintain as reserves a working capital balance of 30                      the use of an unusual or complex financing or security structure.
days.
                                                                                                  10. The City will not issue tax or revenue anticipation notes.
Enterprise funds with a negative cash balance should develop plans that will                      11. The City will strive to maintain a high reliance on pay-go financing for its
allow the fund to show a positive cash balance within five years, and rates and                       capital improvements.
fees should be set accordingly.
                                                                                     2 - 10
                                                  Financial Management Policies
    12. Neither Maryland State law nor the City Charter mandates a limit                                  III.   The City wants to reduce the principal outstanding in order to
        on municipal debt. However, the City will strive to maintain its net tax-                                achieve future debt service savings, and it has available
        supported debt at a level not to exceed 1.0 percent of the assessed                                      working capital to do so from other sources.
        valuation of taxable property within the City.
    13. The City will strive to ensure that its net tax-supported debt per capita
        does not exceed $700. The City will strive to ensure that the combined                  CASH MANAGEMENT/INVESTMENT POLICIES:
        total of its direct net bonded debt and its attributed share of overlapping
        debt issued by Montgomery County does not exceed $2,000 per capita.                        1.   Investments and cash management will be the responsibility of the Chief
    14. The City will strive to ensure that its net tax-supported debt per capita as                    Financial Officer.
        a percentage of Federal adjusted gross income does not exceed 2.5                          2.   City funds will be managed in accordance with the prudent person
        percent.                                                                                        standard with the emphasis on safety of principal, liquidity, and yield, in
    15. The City will maintain its annual net tax-supported debt service costs at                       that order.
        a level less than 15 percent of the combined expenditure budgets (net of                   3.   Investments of the City will be made in accordance with the City’s
        interfund transfers) for the General, Special Revenue, and Debt Service                         adopted Investment Policy.
        Funds.                                                                                     4.   The City is authorized to invest in any and all types of investments, as
    16. The City will set enterprise fund rates at levels needed to fully cover                         described in State Finance and Procurement Article 6-222(a) or Article
        debt service requirements as well as operations, maintenance,                                   95, section 22-22N of the Annotated Code of Maryland, except where
        administration and capital improvement costs. The ability to afford new                         specifically prohibited by Maryland statutes.
        debt for enterprise operations will be evaluated as an integral part of the                5.   The City will diversify use of investment instruments to avoid incurring
        City’s rate review and setting process.                                                         unreasonable risks inherent in over-investing in specific instruments,
    17. Debt service coverage ratios will be calculated annually for all of the                         individual financial institutions, or maturities.
        City’s enterprise funds. A minimum of a 1.2 coverage ratio should be                       6.   The Chief Financial Officer shall present reports of the City’s
        maintained for each of the enterprise funds.                                                    investments and cash position quarterly to the Mayor and Council.
                                                                                                   7.   All cash is combined into one pooled operating account to facilitate
Refinancing:                                                                                            effective management of the City’s resources, and to maximize yield
                                                                                                        from the overall portfolio.
Periodic reviews of all outstanding debt will be undertaken to determine                           8.   Interest earnings shall be allocated to funds with a positive cash balance
refinancing opportunities. Refinancings will be considered (within Federal tax law                      based on the average of the past six months cash balances by fund.
constraints) under the following conditions:

           I.     There is a net economic benefit.
                                                                                                ACCOUNTING, AUDITING, AND FINANCIAL REPORTING POLICIES:
                  In general, refinancings for economic savings will be
                  undertaken whenever net present value savings of at least 5                      1.   It will be the policy of the City of Rockville to provide all financial
                  percent of the refunded debt can be achieved.                                         information in a thorough, timely fashion and in a format that is easy for
                  Refinancings that produce net present value savings of less                           the Mayor and Council, Citizens, Committees and City employees to
                  than 5 percent will be considered on a case-by-case basis,                            understand and utilize.
                  provided that the present value savings are at least 3 percent                   2.   The City’s accounting finance systems will be maintained in accordance
                  of the refunded debt.                                                                 with Generally Accepted Accounting Principles (GAAP) as promulgated
                  Refinancings with savings of less than 3 percent will not be                          by the Government Accounting Standards Board (GASB).
                  considered unless there is a compelling public policy objective.                 3.   The basis of accounting within governmental fund types used by the City
           II.    It is needed to modernize covenants that are adversely                                of Rockville is modified accrual as well as the “current resource
                  affecting the City’s financial position or operations.                                measurement focus.” Under this method of accounting, revenue is
                                                                                                        recorded when susceptible to accrual, such as when measurable and
                                                                                       2 - 11
                                              Financial Management Policies
    available for the funding of current appropriations. All enterprise funds                   11. Beginning in FY09 the City will prefund its retiree health benefits in
    follow the accrual basis of accounting, as well as the “capital                                 accordance with GASB 45 based upon an actuarial valuation study. The
    maintenance measurement focus.” Under this method of accounting,                                study shall be completed every other year, and the City will achieve full
    revenues are recognized when earned, as billed and unbilled, and                                funding over a five-year period.
    expenses are recorded when incurred.
4. The City places continued emphasis on maintenance of an accounting
    system which provides strong internal budgetary and accounting                          PRODUCTIVITY:
    controls designed to provide reasonable, but not absolute, assurances
    regarding both the safeguarding of assets against loss from
                                                                                            Fiscal responsibility and accountability to the community are two values
    unauthorized use or disposition and the reliability of financial records for
                                                                                            embodied within the “ROCKVILLE WAY” of providing premium services to the
    preparing financial statements and reports, such as the budget and the
                                                                                            community. To this end, the City will constantly monitor and review our methods
    Comprehensive Annual Financial Report (CAFR) as well as the
                                                                                            of operation to ensure that services continue to be delivered in the most cost
    maintenance of accountability of assets.
                                                                                            effective manner possible. This review process encompasses a wide range of
5. An independent audit of the City of Rockville is performed annually. The                 productivity issues, including:
    auditor’s opinion will be included in the City’s CAFR. The City will strive
    for an unqualified auditor’s opinion.
                                                                                                      I.      Analyzing systems and procedures to identify and remove
6. An independent audit firm will be selected through a competitive process
                                                                                                              unnecessary review requirements.
    at least once every five years. The Mayor and Council will award the
    audit contract upon the recommendation of the City Manager and Chief                              II.     Evaluating the ability of new technologies and related capital
    Financial Officer.                                                                                        investments to improve productivity.
7. The City of Rockville issues a CAFR within four months of the close of                             III.    Developing the skills and abilities of all City employees.
    the previous fiscal year. It will be presented to the Mayor and Council                           IV.     Developing and implementing appropriate methods of
    within six months of the fiscal year end at a regularly scheduled City                                    recognizing and rewarding exceptional employee performance.
    Council meeting. The CAFR will be submitted annually to The                                       V.      Evaluating the ability of the private sector to perform the same
    Government Finance Officers Association (GFOA) for peer review as                                         level of service at a lower cost.
    part of the Certificate of Achievement for Excellence in Financial
    Reporting program. All reports prepared by the auditors, and                                      VI.     Periodic formal reviews of operations on a systematic ongoing
    management’s response to those reports will be presented to the Mayor                                     basis.
    and Council at a regularly scheduled Council meeting within six months                            VII.    Encouraging accountability by delegating responsibility to the
    of the fiscal year end.                                                                                   lowest possible level.
8. The City offers its employees a defined benefit pension plan and a                                 VIII.   Stimulating creativity, innovation and individual initiative.
    defined contribution pension plan. The plans are administered by the                              IX.     Improving the organization’s ability to respond to changing
    Retirement Board comprised of seven members appointed by the Mayor                                        needs, and identify and implement cost-saving programs.
    and Council to serve two-year terms.
                                                                                                      X.      Assigning responsibility for effective operations and citizen
9. The retirement plans do not issue separate financial statements, but                                       responsiveness to the department.
    plans shall be included as part of the City’s financial statements and
    accordingly be subjected to an annual audit.
10. The City’s annual contribution toward the pension plans shall be
    determined by an independent actuary and published as an annual
    actuarial report. The City will annually meet its obligation to funding its
    share of the pension plan contribution out of its operating budget.




                                                                                   2 - 12
                                           Summary of Major Policy Documents
The following policy documents guide the City’s strategic planning and ongoing                   Town Center, the environment, open space, recreation and parks, and a multi-
operations:                                                                                      modal transportation system. It acts as a tool for guiding the coordinated and
                                                                                                 harmonious future development of the City. The Master Plan provides:
City Charter
The City of Rockville became incorporated through the adoption of a City Charter                          A factual basis for making major planning and zoning decisions
in 1860. The Charter empowers the City to pass ordinances, in accordance with                             A guide for planning capital improvements and public services
the laws of the State of Maryland, necessary for the good government of the City.                         Assistance in coordinating decision-making between public and private
For additional information, please contact the Office of the City Clerk at (240)                          interests
314-8280.
                                                                                                 In keeping with State requirements the 2002 Master Plan was reviewed in 2008-
City Code                                                                                        2009 and a decision taken to revise it using a two-phase process:
The City Code contains all general and permanent ordinances of the City of
Rockville. These ordinances are codified in accordance with State law. For                       Phase 1: 2009 – 2011
additional information, please contact the Office of the City Clerk at (240) 314-                        Adopt State-mandated new elements (municipal growth and water
8280 or visit the City’s website, www.rockvillemd.gov/government/citycode.htm.                           resources)
                                                                                                         Adopt amendment to enable City to become part of the Montgomery
Investment Policy                                                                                        Heritage Area
The City of Rockville’s Investment Policy is a guide for the investment of public                        Complete Parks Recreation and Open Space (PROS) plan, and make
funds not required for immediate expenditure. The policy was revised in May                              appropriate amendment to Master Plan
2006 to include a list of authorized financial institutions and a list of investment                     Complete and adopt Rockville’s Pike Plan
diversity specifications. The policy assures compliance with Federal, State and                          Identify Critical Sites and determine whether an amendment to update
local laws governing the investment of public monies. The policy assures that                            the Critical Sites is warranted
sufficient liquidity is available to meet normal operating and unexpected
                                                                                                         Update Housing Goals and Objectives
expenditures, and protects the principal monies entrusted to the City while
                                                                                                         Convene discussion series on Master Plan issues
generating the maximum amount of investment income. The policy is reviewed
annually and is revised as needed. For additional information please contact the                 Phase 2a: 2011 – 2012
Finance Department at (240) 314-8400 or visit the City’s website,                                        Revise goals and objectives for the remaining elements of the Master
www.rockvillemd.gov/government/finance/investments.htm.                                                  Plan through an extensive public/community participation process
Cost Allocation Plan (CAP)                                                                       Phase 2b: 2012 – 2013
The purpose of the City’s Cost Allocation Plan (CAP) is to identify the total cost of                    Approval process for Planning Commission and Mayor and Council
providing specific City services. The CAP makes determining total program costs
possible by establishing a rational and consistent methodology for identifying and               For additional information, please contact the Department of Community Planning
allocating indirect costs to direct cost programs. Because of this, the CAP is a                 and Development Services at (240) 314-8200, or visit the City’s website,
valuable analytical tool in a number of situations, including allocating                         www.rockvillemd.gov/masterplan.
organizational resources, performing expense analyses, evaluating the cost of                    Neighborhood Plans
performing services in-house versus contract, establishing fees designed for full                Neighborhood plans integrate local concerns with long-range planning policies
cost recovery, recovering indirect costs associated with grant programs and                      and programs at the Citywide level. Rockville is divided into 18 planning areas.
reimbursing support service costs provided by the General Fund to enterprise                     Neighborhood plans are amendments to the Master Plan that address and
operations such as water, sewer, refuse and stormwater. For additional                           expand on the development strategy for each of these planning areas. These
information please contact the Finance Department at (240) 314-8400 or visit the                 plans must comply with the goals and objectives of the Master Plan.
City’s website, www.rockvillemd.gov.
                                                                                                 Neighborhood plans typically address major aspects of development like: land
Comprehensive Master Plan                                                                        use and zoning, housing, circulation (i.e., traffic, mass transit, bike/pedestrian
The current Master Plan was adopted in November 2002 and has been updated                        issues), community services and facilities, and the environment.
with the adoption of the Bikeway Master Plan (2004), and the East Rockville
(2004), Lincoln Park (2007) and Twinbrook (2009) Neighborhood Plans. The plan
reaffirms the City’s commitment to neighborhoods, a variety of housing options,
                                                                                        2 - 13
                                          Summary of Major Policy Documents
Major Neighborhood Plans include:                                                               revealed significant deterioration of pipes primarily due to tuberculation, which is
       Twinbrook, adopted May 2009                                                              corrosion that occurs on the inside of iron water pipes. This tuberculation
       East Rockville, adopted March 2004                                                       restricts flow in the pipe and may cause issues with water quality. Most of the
       Lincoln Park, adopted February 2007                                                      pipes with the tuberculation were installed in the post World War II development
       Hungerford/New Mark Commons/Monroe - Lynfield, adopted March 1985                        boom.       Rockville will be undertaking a significant program, Water Main
       Westmont (Tower Oaks), adopted March 1985                                                Rehabilitation, to replace these pipes. A Water Treatment Plant Facility Study
       Rockville Pike Corridor, adopted April 1989 (expected adoption of new                    was also initiated in 2007. Preliminary recommendations from this study indicate
       plan in 2010)                                                                            that improvements are required to meet stricter Federal and State regulations.
                                                                                                Improvements to the solids handling process, electrical system and surge
       West End-Woodley Gardens East/West, adopted September 1989
                                                                                                suppression are also needed.
       Town Center Master Plan, adopted October 2001
                                                                                                Rockville periodically examines its three sewer sheds, Cabin John, Rock Creek,
Watershed Management Plans                                                                      and Watts Branch, to determine what upgrades, if any, are needed to convey
High levels of runoff and urban pollutants from existing development in Rockville               sewage associated with projected levels of development. In 2007, a
exacerbate stream erosion and degrade water quality and aquatic life. To                        comprehensive Sanitary Sewer Evaluation Study (SSES) was completed in Cabin
address these problems, management plans have been developed for the City’s                     John. This study identified the location of infiltration and inflow (I/I) in the sewer
three watersheds to evaluate stream conditions, identify locations of needed                    system and recommended cost-effective projects to eliminate the I/I. I/I is
improvements, and recommend CIP projects for stormwater management and                          extraneous water that enters the sanitary sewer system. Eliminating I/I is
stream restoration. Rockville’s watershed management plans contribute to the                    typically done by lining sewer lines with a PVC liner. A portion of the Rock Creek
region-wide effort to improve the Chesapeake Bay. Our watershed plans support                   basin was evaluated in 2007; additional sub-sewer sheds will be evaluated in
the goals of the C2K (Chesapeake Bay 2000 Agreement), as well as the                            2010. Recommendations from the 2007 Rock Creek SSES will be implemented
mandatory TMDL (Total Maximum Daily Loads) requirements imposed through                         starting in 2008 through 2010. The Watts Branch sewer shed will be studied in
the Clean Water Act. Additionally, our watershed plans are a component of the                   2012. For additional information, please contact the Department of Public Works
mandatory NPDES (National Pollutant Discharge Elimination System)                               at (240) 314-8500 or look on the City’s Wwbsite under Watershed Planning,
requirements, which also is imposed through the Clean Water Act.                                www.rockvillemd.gov/environment/watersheds/index.html.
The plans evaluate five areas:                                                                  Environmental Guidelines
1. Natural resource protection and environmental quality                                        Adopted in 1999, the Environmental Guidelines establish a comprehensive and
2. Recreation and park preservation needs                                                       cohesive method to protect the City’s natural resources during and after the
3. Neighborhood concerns                                                                        development process. They identify existing natural resources and present
4. City infrastructure protection                                                               various environmental management strategies and criteria to govern
5. Stormwater management and stream restoration goals                                           development within the City of Rockville. For additional information, please
The Watershed Management Plans are:                                                             contact the Department of Community Planning and Development Services at
      Cabin John Creek Watershed Management Plan, adopted Feb. 1996                             (240) 314-8200. This document is posted on the City’s website,
      Rock Creek Watershed Management Plan, adopted Apr. 2000                                   www.rockvillemd.gov/environment/regulations/#environmental_guidelines.
      Watts Branch Watershed Management Plan, adopted Aug. 2001                                 Strategy for a Sustainable Rockville
These watershed plans are reviewed and updated approximately every ten years.                   Rockville has a long history of managing the City in a sustainable and
For additional information, please contact the Department of Public Works at                    environmentally sensitive manner. However, desiring to be known as a national
(240) 314-8500 or look on the City’s website under Watershed Planning,                          leader in these areas, the Mayor and Council unanimously adopted a
www.rockvillemd.gov/environment/watersheds/index.html.                                          Sustainability Strategy on October 1, 2007. In taking this historic action, the
                                                                                                Mayor and Council acknowledged that a combination of forces, including
Water and Wastewater System Studies                                                             unprecedented population growth, economic expansion, upward urbanization
Rockville’s water and wastewater infrastructure is periodically analyzed to look at             trends, and ever-higher energy prices, particularly for fossil fuels, are stressing
the ability to provide sufficient capacity for the Master Plan level of development.            the earth's resources and society's economic ability to maintain our current
In 2007, the water system was comprehensively studied to determine deficiencies                 standard of living. Further, it has become increasingly clear that many of these
and develop capital improvement projects to correct the deficiencies. This study                challenges are falling to local government to solve. Cities that act with
                                                                                       2 - 14
                                           Summary of Major Policy Documents
innovation, creativity, and foresight and successfully address these challenges                   Parks, Recreation and Open Space (PROS) Plan
will likely enjoy economic advantages over other communities, and lead the way                    The PROS Plan is a long-range policy document that sets overall direction in
for others to follow.                                                                             terms of goals and objectives for parks and recreation in the City of Rockville for
                                                                                                  the next twenty years. The City’s parks, recreation and open spaces serve a
Each day, Rockville staff, residents and businesses make thousands of small
                                                                                                  diverse population of City residents, but also non-City residents who come from
decisions that relate to the overall sustainability of the City. Therefore, a
                                                                                                  well beyond the City’s borders and a large employment base. An updated version
“Sustainable Rockville” requires a coordinated and strategic examination of
                                                                                                  of the PROS Plan lan was presented to and approved by the Mayor and Council
current practices and procedures across City Departments and Divisions.
                                                                                                  on March 15, 2010. The updated PROS Plan will be included in the updates to
Consequently, the Strategy is a comprehensive, five-year (and beyond) plan that
                                                                                                  the Comprehensive Master Plan, scheduled for the Planning Commission in the
primarily targets the City’s own activities and actions, but is also intended to
                                                                                                  fall of 2010. For additional information, please contact the Parks and Open Space
promote and encourage similar actions by individual businesses and residents. It
                                                                                                  Division of the Department of Recreation and Parks at (240) 314-8702.
establishes performance targets and goals for the City and is organized around
the following eleven key principles:
    1.    Get the Residents Involved
    2.    Limit Natural Resource Consumption to the Extent Possible
    3.    Reduce Pollution Sources as Opportunities Present Themselves
    4.    Avoid Adverse Environmental Consequences
    5.    Evaluate the True Cost of Goods and Services
    6.    Maximize Reuse and Recycle Opportunities
    7.    Limit Impervious Surfaces Across the City
    8.    Promote Alternative Transit Options to Fossil Fuel Based Transport
    9.    Participate in Partnerships in the Area, Region and National levels
    10.   Leverage City Resources by Seeking External Support
    11.   Network With Other Maryland and Metropolitan Communities

The Strategy also presents a set of purchasing criteria to help verify that the City
only buys the goods and services it needs and that these goods and services are
not consumed faster than necessary. Finally, the centerpiece of the Strategy is
an Appendix that sets out over 60 short-term (3-5 year) action items that will
significantly move the City in a sustainable direction.

For additional information, please contact the Environmental Management
Division of the Department of Public Works at (240) 314-8870 or look on the
City’s website at: www.rockvillemd.gov/environment.

Bikeway Master Plan
The Rockville Bikeway Master Plan was originally adopted in October 1998, and
an update to the Plan was adopted in April 2004. With the strong support of the
Mayor, City Council, City staff, and citizens, new bicycle facilities were added and
new bicycle safety and promotion programs were undertaken. This transformed
Rockville from a city with a few unconnected bicycle trails into one of Maryland’s
leading communities for bicycling. The 2004 Plan Update established the
following vision statement: “Bicycling in Rockville is for all types of trips; for all
types of people; for all parts of the City.” For additional information, please
contact the Recreation Services Division of the Department of Recreation and
Parks at (240) 314-8620.
                                                                                         2 - 15
                             Directory of Boards and Commissions Officials
The City’s Boards and Commissions can be defined as primarily advisory, quasi-                Board or Commission          Chairperson           Staff Liaison       Phone Number
judicial, or administrative in function. Additionally, there are groups that are
separate corporations, to which the Mayor and Council may appoint some or all                 Planning Commission        David Hill            Jim Wasilak          (240) 314-8211
of the members according to the by-laws of the group, which retains a separate
identity. Many of the members of the City’s Boards and Commissions are                        Recreation and Park        Katherine
                                                                                                                                               Burt Hall            (240) 314-8600
experts in their respective fields and the wealth of information they provide on a            Advisory Board             Savage
voluntary basis to the City is immense.
                                                                                              Retirement Board           Alex Espinosa         Gavin Cohen          (240) 314-8400

                             Mayor and Council                                                Rockville Economic
                                                                                                                         Albert Lampert
                                                                                                                                               Sally
                                                                                                                                                                    (301) 315-8096
                                                                                              Development, Inc.                                Sternbach*
   Phyllis Marcuccio        Mayor                     (240) 314-8291
                                                                                              Rockville Housing
   John B. Britton          Councilmember             (240) 314-8292                                                     Virginia Onley        Vacant               (301) 424-8265
                                                                                              Enterprises
   Piotr Gajewski           Councilmember             (240) 314-8294
                                                                                                                         Mary Jane             Senior Center
   Bridget Donnell                                                                            Rockville Seniors, Inc.                                               (240) 314-8800
                            Councilmember             (240) 314-8293                                                     Walling               Manager
   Newton
                                                                                              Rockville Sister City      James
   Mark Pierzchala          Councilmember             (240) 314-8295                                                                           Jon McLaren          (240) 314-8625
                                                                                              Corporation                McConkey
                                                                                              Senior Citizens            Ciriaco               Lorraine
                         Boards and Commissions                                                                                                                     (240) 314-8812
                                                                                              Commission                 Gonzales              Schack
Board or Commission        Chairperson         Staff Liaison     Phone Number                                            Douglas
                                                                                              Sign Review Board                                Tamara Dietrich      (240) 314-8254
                                                                                                                         Worthing
Animal Matters Board     Lucille Roberts     Mike England        (240) 314-8913               Traffic and
                                                                                                                                               Emad Elshafei        (240) 214-8508
                                                                                              Transportation             Elizabeth Crane
                                                                                                                                               Carrie Sanders       (240) 314-8529
Board of Appeals         Vacant              Castor Chasten      (240) 314-8223               Commission
                                                                                              *    The City has a contract with REDI to strengthen and broaden the City's economic
Board of Supervisors                         Claire                                                base. While the staff liaison listed is employed by REDI, this person represents the
                         David Celeste                           (240) 314-8280
of Elections                                 Funkhouser                                            City as a contractor.
Compensation                                 Claire
                         Vacant                                  (240) 314-8280
Commission                                   Funkhouser
Cultural Arts
                         John Moser          Betty Wisda         (240) 314-8681
Commission
Environment
                         Kris Dighe          Mark Charles        (240) 314-8871
Commission
Historic District        Janet Hunt-
                                             Robin Ziek          (240) 314-8236
Commission               McCool
Human Rights
                         Debbie Dwyer        Janet Kelly         (240) 314-8316
Commission
Human Services           Cynthia Cotte       Community
                                                                 (240) 314-8300
Advisory Commission      Griffiths           Svc. Prog. Mgr.
Landlord-Tenant          Douglas             Raymond
                                                                 (240) 314-8320
Affairs Commission       Lunenfeld           Logan
Personnel Appeals
                         Irving Shapiro      Colette Anthony     (240) 314-8470
Board


                                                                                     2 - 16
                                        Boards and Commissions Descriptions
Animal Matters Board - A four-member body whose members are appointed by                        of architecture, history, preservation, or urban design. The Commission is
the Mayor and Council to serve three-year terms. The Board mediates petitions;                  charged with recommending the boundaries of the districts that are deemed to be
provides written recommendations to the Chief of Police; provides education and                 of historic or architectural value in the City of Rockville and in reviewing
counseling on responsible ownership, maintenance, and treatment of animals;                     applications for construction or changes with in the historic districts. (Chapter 25,
and provides advice and recommendations to the Mayor and Council on matters                     Rockville City Code)
related to the care, training, maintenance, and regulation of animals within the
City. (Chapter 3, Rockville City Code)                                                          Human Rights Commission - An 11-member body whose members are
                                                                                                appointed by the Mayor and Council to serve three-year terms. The Commission
Board of Appeals - A three-member body appointed by the Mayor and Council                       provides community mediation to resolve disputes, as well as adjudicates cases
to serve three-year terms. The Board is charged with the responsibility of hearing              of discrimination occurring in the City. Commissioners sponsor training in
and deciding all appeals and applications for variances and special exceptions,                 mediation and organize City events such as the annual Dr. Martin Luther King, Jr.
as provided for in the Zoning Ordinance of the City of Rockville. (Chapter 25,                  celebration. (Chapter 11, Rockville City Code)
Rockville City Code)
                                                                                                Human Services Advisory Commission - An 11-member body whose
Board of Supervisors of Elections - A five-member body whose members are                        members are appointed by the Mayor and Council to serve three-year terms. The
appointed by the Mayor and Council to serve four-year terms. The Board is                       Commission assists the Mayor and Council in deciding appropriate City roles in
charged with the conduct of all City elections, registration of voters, and the                 human services; conducting an annual assessment of critical human service
keeping of records in connection with these functions. (Chapter 8, Rockville City               needs and developing recommendations on whether resources should be
Code and Article III, Charter of the City of Rockville)                                         reallocated to meet these needs; exploring ways to develop new or enhanced
                                                                                                services in areas identified as serious problems; and participating in oversight
Compensation Commission - A five-member body whose members are                                  and evaluation activities to ensure accountability and cost-effectiveness of City
appointed by the Mayor and Council to serve six-year terms. Established in 1994,                and outside providers of human services. (Resolution No. 3-97)
the Commission is charged with reviewing the compensation of the Mayor and
Council every three years and recommending annual compensation for the five                     Landlord-Tenant Affairs Commission - A seven-member body whose
elected officials of the City. (Chapter 2, Rockville City Code)                                 members are appointed by the Mayor and Council to serve three-year terms. The
                                                                                                Commission provides a forum for adjudicating differences or disputes between
Cultural Arts Commission - An 11-member body whose members are                                  landlords and tenants. (Chapter 18, Rockville City Code)
appointed by the Mayor and Council to serve three-year terms. The Commission
is responsible for the encouragement of arts and culture in the City for the benefit            Personnel Appeals Board - A three-member body whose members are
of Rockville citizens. In addition, the Commission recommends to the Mayor and                  appointed by the Mayor and Council to serve three-year terms. The Board is
Council appropriate programs, activities, and utilization policies of the City                  charged with hearing appeals filed by employees of the City of Rockville in cases
facilities to add to the further development of Rockville as a cultural center.                 of suspension, demotion, or dismissal action taken by the City Manager for
(Chapter 4, Rockville City Code)                                                                disciplinary reasons. (Chapter 15, Rockville City Code)

Environment Commission - A nine-member body with backgrounds in science,                        Planning Commission - A seven-member body whose members are appointed
the environment, and education, as well as a student member, whose members                      by the Mayor and Council to serve five-year terms. The Commission is charged
are appointed by the Mayor and Council to serve three-year terms. The                           with formulating and revising a Master Plan for the City of Rockville. The
Commission is responsible for a work program that includes recommending                         Commission also reviews and makes recommendations to the Mayor and Council
policies and procedures relating to the environment, watershed stewardship and                  on applications for Map and Text Amendments; reviews and makes
protection, and promoting a sustainable community through initiatives related to                recommendations to the Board of Appeals on all Special Exception Applications;
natural resource management and development, energy efficiency, pollution and                   reviews and decides on applications for use permits; reviews and approves all
public education. (Resolution No. 20-02)                                                        subdivision plans; and initiates and conducts other planning studies and functions
                                                                                                as necessary in the overall planning operation of the City. (Chapter 25, Rockville
Historic District Commission - A five-member body whose members are                             City Code)
appointed by the Mayor and Council to serve three-year terms. The members
represent a demonstrated special interest, experience, or knowledge in the fields
                                                                                       2 - 17
                                        Boards and Commissions Descriptions
Recreation and Park Advisory Board - A nine-member body whose members                           Traffic and Transportation Commission - A nine-member body appointed by
are appointed by the Mayor and Council to serve three-year terms. The Board is                  the Mayor and Council to serve three-year terms. The purpose of the
charged with encouraging the development of desirable recreation and park                       Commission is to advise the Mayor and Council and the Planning Commission on
facilities in the City and recommending those programs for young people and                     all traffic matters in the City and to make appropriate recommendations.
adults that suitably reflect the needs of the citizens. One board member position               (Resolution Nos. 28-72 and 3-76).
is filled by a youth. (Chapter 14, Rockville City Code)

Retirement Board - A seven-member body whose members are appointed by
the Mayor and Council to serve three-year terms. The Board exists for the
purpose of generally directing the affairs of the City's retirement system. (Chapter
15, Rockville City Code)

Rockville Economic Development, Inc (REDI) – Rockville Economic
Development, Inc. (REDI) was established by the City as a public-private
partnership to deliver the City’s economic development services. REDI’s mission
is to strengthen and broaden the economic base of Rockville.

Rockville Housing Enterprises (RHE) - RHE is the City's public housing agency
that provides housing opportunities for lower income households who are unable
to rent or buy homes through normal channels and initiates redevelopment
activities.

Rockville Seniors, Inc. (RSI) - This 11-member non-profit corporation was
created by the Mayor and Council for the purpose of ensuring that the quality of
life for all Rockville senior citizens is improved through the properly supported
Rockville Senior Center. The corporation does this by generating positive interest
from the community to raise funds to maintain and improve the Rockville Senior
Center.

Rockville Sister City Corporation - This 13-member non-profit corporation was
organized to support educational and charitable programs and to provide a
continuing relationship between the citizens of Rockville and of Pinneberg,
Germany.

Senior Citizens Commission - A nine-member body whose members are
appointed by the Mayor and Council to serve three-year terms. The Commission
is charged with proposing programs, activities, and legislation to meet the needs
of senior citizens in Rockville and with conducting studies necessary to determine
those needs. (Resolution Nos. 62-69, 21-70, and 30-73)

Sign Review Board - A four-member body whose members are appointed by the
Mayor and Council to serve three-year terms. The Board reviews applications for
sign permits and may grant modifications from sign regulations where applicable.
(Chapter 25, Rockville City Code)



                                                                                       2 - 18
                                                       All Funds Summary - Operating
                                                                                     FY 2011 Resources
                                                                                                                                                              Speed
                            General        Water        Sewer        Refuse       Parking        SWM         RedGate     Spec. Act.   CDBG        TCMD                     Debt Serv.   Total for
                                                                                                                                                              Camera
                             (110)         (210)        (220)         (230)        (320)         (330)        (340)        (350)      (360)       (370)                      (550)      All Funds
                                                                                                                                                               (380)
Revenue
  Property Taxes            34,762,000             -            -             -    163,000               -           -           -            -   930,000              -           -     35,855,000
  Licenses & Permits         1,660,000             -            -             -             -     40,000             -           -            -           -            -           -      1,700,000
  From Other Gov't.         13,527,213             -            -             -    295,000               -           -           -    614,348             -            -           -     14,436,561
  Charges for Serv.          5,853,405    8,665,000    7,820,000    5,510,000     1,110,000     2,065,000    1,017,710      20,000            -           -            -           -     32,061,115
  Fines & Forfeitures         645,000              -            -             -    660,000               -           -           -            -           -   1,344,000            -      2,649,000
  Use of Money & Prop.        322,080       10,800        2,000        2,000         4,000         6,500             -     699,200            -           -      5,000       200,000      1,251,580
  Other Revenue              5,332,970      26,750        2,000          350                -            -           -           -            -           -            -           -      5,362,070
Total Revenue               62,102,668    8,702,550    7,824,000    5,512,350     2,232,000     2,111,500    1,017,710     719,200    614,348     930,000     1,349,000      200,000     93,315,326
Transfers In                          -    446,500              -     41,200      1,030,000              -           -       8,530            -           -            -   5,100,000      6,626,230
Total Resources             62,102,668    9,149,050    7,824,000    5,553,550     3,262,000     2,111,500    1,017,710     727,730    614,348     930,000     1,349,000    5,300,000     99,941,556
Appr. Fund Bal/Net Assets    1,019,625      35,260      351,290      319,840      1,156,715     1,139,150     673,990      296,510            -           -            -           -      4,992,380
TOTAL                       63,122,293    9,184,310    8,175,290    5,873,390     4,418,715     3,250,650    1,691,700   1,024,240    614,348     930,000     1,349,000    5,300,000    104,933,936


                                                                                    FY 2011 Use of Funds
                                                                                                                                                              Speed
                            General        Water        Sewer        Refuse       Parking        SWM         RedGate     Spec. Act.   CDBG        TCMD                     Debt Serv.   Total for
                                                                                                                                                              Camera
                             (110)         (210)        (220)         (230)        (320)         (330)        (340)        (350)      (360)       (370)                      (550)      All Funds
                                                                                                                                                               (380)
Operating Exp.
  Personnel                 40,349,040    3,322,420    1,481,150    2,583,760      357,265      1,760,380     873,200       25,580    120,000      41,845      395,990             -     51,310,630
  Operating                 11,717,863    2,083,910    3,423,310    1,720,360     1,190,460      606,730      446,050      418,960    494,348     706,750      586,560             -     23,395,301
  Capital Outlay              480,620       91,700       41,000               -             -            -     95,700      469,800            -           -            -           -      1,178,820
  Administrative                      -   1,000,110     541,650      977,470       656,980       604,940      165,750            -            -    78,090      222,320             -      4,247,310
  Other                      1,254,040    1,706,000    1,505,000     352,000       826,500       275,000      100,100      109,900            -           -            -      65,000      6,193,540
Total Operating Exp.        53,801,563    8,204,140    6,992,110    5,633,590     3,031,205     3,247,050    1,680,800   1,024,240    614,348     826,685     1,204,870       65,000     86,325,601
Other Uses of Funds
  Principal                           -            -            -             -             -            -           -           -            -           -            -   3,332,298      3,332,298
  Interest                            -    980,170      874,780      101,700      1,387,510        3,600       10,900            -            -           -            -   1,743,786      5,102,446
  Capital Improvements       3,141,000             -            -             -             -            -           -           -            -           -            -           -      3,141,000
  Transfers Out              6,179,730             -    308,400      138,100                -            -           -           -            -           -            -           -      6,626,230
Total Other Uses             9,320,730     980,170     1,183,180     239,800      1,387,510        3,600       10,900            -            -           -            -   5,076,084     18,201,974
Total Use of Funds          63,122,293    9,184,310    8,175,290    5,873,390     4,418,715     3,250,650    1,691,700   1,024,240    614,348     826,685     1,204,870    5,141,084    104,527,575
Add. Fund Bal/Net Assets              -            -            -             -             -            -           -           -            -   103,315      144,130       158,916        406,361
TOTAL                       63,122,293    9,184,310    8,175,290    5,873,390     4,418,715     3,250,650    1,691,700   1,024,240    614,348     930,000     1,349,000    5,300,000    104,933,936
                                                                                                 3-1
                All Funds Summary - Capital Improvements Program (CIP)
The Capital Improvements Program (CIP) is the City’s capital investment plan for                                   FY 2011 - FY 2015 Operating Cost Impacts by Fund
the next five years. The CIP is a fiscal and planning device that allows the City to
inventory and monitor capital project costs, funding sources, departmental                       Most capital projects impact future operating budgets due to an increase or
responsibilities, and timing schedules. Each year the CIP is reviewed in the                     decrease in maintenance costs or by providing capacity for new programs to be
context of ongoing City, County, State, and Federal planning programs and                        offered. Such impacts vary widely by project and are evaluated individually while
policies as well as the City’s Master Plan. Items included within the CIP are                    assessing the project's feasibility. Figures are listed on the project sheets in the
usually defined within one of the following six categories:                                      CIP budget (separate book), to demonstrate the operating cost impact of a
                                                                                                 project. The following chart lists the total operating cost impacts, by fund and
    1. The acquisition of land for a public purpose.                                             fiscal year, that will be added to the City's operating budget.
    2. The construction of a significant facility, i.e., a building or a road, or the
       addition to or extension of an existing facility.                                            Fund             FY 2011          FY 2012             FY 2013          FY 2014         FY 2015
    3. Nonrecurring rehabilitation or major repair to all or part of a facility                    General              90,500         290,250               86,225         (230,515)             175
       provided the total cost per fiscal year is more than $100,000.                              Water                16,490          15,400                    -            1,000            2,000
    4. Any specific design work related to an individual project falling within                    Spec Act             80,000                 -                  -              -                 -
       the above three categories.                                                                 SWM                    6,360         51,500                  5,000        44,100            29,400
    5. Any long-term project funded through a grant where the establishment of                     Total               193,350         357,150               91,225         (185,415)          31,575
       a CIP project is a condition of the grant.
    6. A significant one-time investment in tangible goods of any nature, the                                              FY 2011 - FY 2015 CIP Fund Accounts
       benefit of which will accrue over a multi-year period over $100,000.
                                                                                                                                         All Funds
                                                                                                                                         All Funds


                                                                                                                  Governmental Funds                    Enterprise/Proprietary Funds
                                                                                                                                                        Enterprise/Proprietary Funds
The CIP is divided into five program areas for FY 2011 as shown below.

                               FY 2011 New Appropriations                                                          Capital Projects                  Water
                                                                                                                                                   Water                     Parking
                                                                                                                                                                                Parking
                             Program Area                   New Approps.
                   Recreation and Parks                            1,012,000                                                                         Sewer
                                                                                                                                                   Sewer                      Stormwater
                                                                                                              Special Revenue Funds
                   Transportation                                  7,283,310
                   Stormwater Management                             880,000                                                                           Refuse                 Redgate Golf
                                                                                                                    Speed Camera
                   Utilities                                     11,461,000
                   General Government                             1,323,800
                   Total                                         21,960,110

                                                                                FY 2011 Sources of Funds
                                              Cap. Proj.          Water            Sewer          Refuse             Parking           SWM               RedGate          Spd. Cam.       Total for
           Source of Funds
                                                (420)             (210)            (220)           (230)              (320)            (330)              (340)             (380)         All Funds
  Pay-go                                         6,672,340         1,684,460            7,800         56,200                   -       945,000                        -    1,678,000       11,043,800
  Bond Proceeds                                         -          4,541,000       5,330,500                  -                -                   -                  -              -       9,871,500
  Developer Contributions                           13,000                  -               -                 -                -                   -                  -              -         13,000
  State and Federal Grants                       1,031,810                  -               -                 -                -                   -                  -              -       1,031,810
  Other                                                -                    -               -                 -                -                   -                  -              -                 -
  TOTAL New CIP Funds                            7,717,150         6,225,460       5,338,300          56,200                   -       945,000                        -    1,678,000       21,960,110
                                                                                           3-2
                                                     All Funds Summary - Operating
The tables below offer a history of revenues and expenditures for all of the City's                The table below summarizes expenditures by department, for all funds
operating funds.                                                                                   combined.
                                  Actual           Adopted            Adopted          %                  Expenditures by                                       Actual                         Adopted                       Adopted                           %
   All Funds Revenues
                                  FY09              FY10               FY11          Change                 Department                                          FY09                            FY10                          FY11                           Change
  Taxes                           35,755,766        35,201,740         35,855,000        1.9%            Mayor and Council                                       1,578,461                            644,400                        598,250                         -7.2%
  Licenses & Permits               1,644,074         2,154,500          1,700,000      -21.1%            City Attorney                                                         N/A                    908,500                        929,350                         2.3%
  Other Governments               18,766,892        17,155,724         14,436,561      -15.8%            City Manager                                            3,173,928                           4,002,900                  4,487,330                       12.1%
  Charges for Services            24,295,963        29,379,631         32,061,115        9.1%            CPDS                                                    4,871,129                           4,629,100                  4,718,113                            1.9%
  Fines and Forfeitures            4,090,875         5,232,000          2,649,000      -49.4%            Finance                                                 2,814,295                           3,248,700                  3,361,300                            3.5%
  Use of Money & Prop.             1,411,174         1,826,773          1,251,580      -31.5%            Human Resources                                         1,214,399                           1,319,400                  1,322,190                            0.2%
  Other / Transfers In             9,557,091         8,329,490         11,988,300       43.9%            Info. and Tech.                                         2,971,126                           2,877,100                  2,958,220                            2.8%
  Appropriated Fund                                                                                      Police                                                  9,604,745                       10,814,400                  10,050,950                              -7.1%
                                             -       2,554,077          4,992,380       95.5%
    Balance / Net Assets                                                                                 Public Works                                           19,295,924                       21,627,210                  22,281,060                              3.0%
  Total                           95,521,834       101,833,935       104,933,936         3.0%            Recreation & Parks                                     20,790,988                       23,336,215                  23,453,828                              0.5%
                                                                                                         Non-Departmental                                       25,798,935                       21,125,502                  25,225,900                         19.4%
                                  Actual           Adopted            Adopted          %                 Subtotal                                               92,113,930                       94,533,427                  99,386,491                              5.1%
 All Funds Expenditures
                                  FY09              FY10               FY11          Change              Debt Service Fund *                                     5,167,978                           5,098,008                  5,300,000                            4.0%
  Personnel                       46,166,411        49,264,972         51,310,630        4.2%            Addition to Fund
                                                                                                                                                                                   -                 2,202,500                       247,445                   -88.8%
  Operating                       21,497,351        24,758,380         23,395,301       -5.5%            Balance / Net Asset

  Capital Outlay                   1,218,849         1,306,550          1,178,820       -9.8%         Total                        97,281,908       101,833,935     104,933,936        3.0%
  Administrative                   1,462,000         1,506,000          4,247,310      182.0%      * The Debt Service Fund receives transfers from other funds to pay off general obligation
                                                                                                   bonds. Since these transfers are already listed as Debt Service expenditures within
  Other / Transfers Out           10,172,762        10,554,025         12,754,770       20.9%
                                                                                                   originating funds, there is a double-counting effect when the Debt Service Fund records
  Transfer to CIP                  8,533,695         4,100,000          3,141,000      -23.4%      the same expenditures. For this reason, the Debt Service Fund is isolated.
   Debt Service                    3,062,862         3,043,500          3,358,660       10.4%
   Subtotal                       92,113,930        94,533,427         99,386,491        5.1%
                                                                                                                                           Expenditures by Department (in millions)
   Debt Service Fund *             5,167,978         5,098,008          5,300,000        4.0%      $30
  Addition to Fund                                                                                 $25                    FY10 Adopted
                                             -       2,202,500            247,445      -88.8%
  Balance / Net Asset




                                                                                                                                                                                                                                                                      $25.2
                                                                                                                          FY11 Adopted




                                                                                                                                                                                                                                                     $23.5
                                                                                                                                                                                                                                             $23.3
                                                                                                   $20




                                                                                                                                                                                                                                     $22.3
                                                                                                                                                                                                                             $21.6
   Total                           97,281,908      101,833,935      104,933,936           3.0%




                                                                                                                                                                                                                                                             $21.1
                                                                                                                                                                                                                   $10.8
                                                                                                                                                                                                                   $10.1
* The Debt Service Fund receives transfers from other funds to pay off general obligation          $15
bonds. Since these transfers are already listed as Debt Service expenditures within originating
                                                                                                   $10


                                                                                                                                                         $4.6
funds, there is a double-counting effect when the Debt Service Fund records the same                                                       $4.0



                                                                                                                                                                 $4.7
                                                                                                                                                  $4.5




                                                                                                                                                                        $3.2




                                                                                                                                                                                                     $2.9
                                                                                                                                                                                $3.4




                                                                                                                                                                                                            $3.0
expenditures. For this reason, the Debt Service Fund is isolated.




                                                                                                                                                                                       $1.3
                                                                                                                           $0.9
                                                                                                            $0.6




                                                                                                                                                                                              $1.3
                                                                                                                                    $0.9



                                                                                                   $5
                                                                                                                   $0.6




                                                                                                   $0
                                                                                                               M&C




                                                                                                                                              CMO
                                                                                                                              Attorney




                                                                                                                                                                                          HR
                                                                                                                                                                           Fin




                                                                                                                                                                                                                    Police
                                                                                                                                                                                                        IT
                                                                                                                                                            CPDS




                                                                                                                                                                                                                                                 R&P


                                                                                                                                                                                                                                                             Dept.
                                                                                                                                                                                                                                 PW




                                                                                                                                                                                                                                                             Non-
                                                                                             3-3
                           Governmental Funds - General Fund Summary
The General Fund is the primary operating fund of the City and is      used to                 General Fund                                               Actual                   Adopted                         Adopted                   %
account for the City's general or non-enterprise activities. Many of   the City                 Revenues                                                  FY09                      FY10                            FY11                   Change
administrative functions are supported through this fund. The major    revenue
                                                                                          Property Taxes                                            34,526,050                     34,345,140                      34,762,000                       1.2%
sources for the General Fund are property tax, income tax, hotel        tax, tax
duplication payments from Montgomery County, and charges or user       fees for           Licenses and Permits                                            1,606,198                      1,954,500                  1,660,000                 -15.1%
services.                                                                                 Rev. from Other Gov't.                                    17,801,482                     16,237,724                      13,527,213                 -16.7%
                                                                                          Charges for Services                                            5,473,186                      5,873,558                  5,853,405                   -0.3%
     Expenditures by         Actual       Adopted       Adopted          %                Fines and Forfeitures                                            648,477                          619,000                    645,000                      4.2%
       Department            FY09          FY10          FY11          Change             Use of Money / Property                                          330,784                          466,375                    322,080                -30.9%
  Mayor and Council          1,575,987       644,400       598,250        -7.2%           Other Revenue                                                   2,451,549                      2,586,290                  5,332,970                106.2%
  City Attorney                   N/A        908,500       929,350        2.3%            Subtotal                                                  62,837,728                     62,082,587                      62,102,668                       0.0%
  City Manager               3,120,120     3,501,000     4,078,530       16.5%            Appr. Fund Balance                                                               -                         -              1,019,625                          N/A
  CPDS                       3,819,377     4,021,100     4,103,765        2.1%            Total                                                     62,837,728                     62,082,587                      63,122,293                       1.7%
  Finance                    2,080,816     2,423,400     2,525,230        4.2%
  Human Resources            1,214,399     1,319,400     1,322,190        0.2%                                           General Fund Expenditures (in millions)
  Information and Tech.      2,971,126     2,877,100     2,958,220        2.8%           $50
  Police                     8,105,771     8,445,800     8,733,330        3.4%                                                                                      FY10 Adopted                            FY11 Adopted
                                                                                         $40
  Public Works               6,068,011     6,380,350     6,366,470        -0.2%




                                                                                                               $40.3
                                                                                                     $38.8
                                                                                         $30
  Recreation & Parks        18,532,833    19,551,635    19,861,928        1.6%




                                                                                                                              $12.2

                                                                                                                                         $11.7
  Non-Departmental          16,795,576    12,009,902    11,645,030        -3.0%          $20




                                                                                                                                                                                                                                             $5.1
                                                                                                                                                                                                            $4.1




                                                                                                                                                                                                                                    $4.0
  Total                     64,284,016    62,082,587    63,122,293        1.7%




                                                                                                                                                                                                                      $3.1
                                                                                                                                                                                     $2.5

                                                                                                                                                                                             $2.3
                                                                                                                                                                    $0.5
                                                                                                                                                            $0.5
                                                                                         $10

                                                                                          $0
       Expenditures          Actual       Adopted       Adopted          %
         by Type             FY09          FY10          FY11          Change                     Personnel              Operating                         Capital                 Other /               Contrib. To Debt Service
                                                                                                                                                           Outlays                Transfers                 CIP
    Salaries                27,288,095    30,086,950    29,661,020        -1.4%
    Benefits                 8,741,926     7,924,102     9,867,640       24.5%
    Overtime                   911,725       787,200       820,380        4.2%                                                General Fund Revenues (in millions)
  Personnel Subtotal        36,941,746    38,798,252    40,349,040        4.0%           $40

    Contractual Services     7,373,957     7,100,580     6,725,625        -5.3%
                                                                                                             $34.8
                                                                                                  $34.3
                                                                                         $30                                                                                   FY10 Adopted                           FY11 Adopted
    Commodities              4,517,281     5,108,630     4,992,238        -2.3%
  Operating Subtotal        11,891,238    12,209,210    11,717,863        -4.0%          $20




                                                                                                                                                                           $5.9

                                                                                                                                                                                  $5.9




                                                                                                                                                                                                                                                $5.3
  Capital Outlay               644,462       457,000       480,620        5.2%



                                                                                                                                                  $16.2




                                                                                                                                                                                                                                      $2.6
                                                                                                                                                            $13.5
                                                                                                                       $2.0
                                                                                         $10                                      $1.7




                                                                                                                                                                                                     $0.6
                                                                                                                                                                                              $0.6




                                                                                                                                                                                                                    $0.5

                                                                                                                                                                                                                             $0.3
  Other / Transfer           2,173,247     2,518,125     2,333,770        -7.3%
  Contribution to CIP        8,533,695     4,100,000     3,141,000      -23.4%           $0
  Debt Service Transfer      4,099,629     4,000,000     5,100,000       27.5%                    Property              Lic. &                   Rev. other           Charges                 Fines &              Use of              Other
  Total                     64,284,016    62,082,587    63,122,293        1.7%                      Tax                Permits                     Gov't              for Serv.              Forfeiture            Money /
                                                                                                                                                                                                                    Prop.

                                                                                   3-4
                General Fund Revenues, Detail of Major Revenue Sources
Property Taxes - General
                                                                                                                        Real Taxable Assessed Value (in billions)
This category of revenue consists of taxes on the assessed value of real estate                $13
(including land and structures on the land) and taxes on the assessed value of
personal property (inventory, furniture, and fixtures of business establishments).             $11




                                                                                                                                                                                             $11.85
                                                                                                                                                                                   $11.68
                                                                                                                                                                         $11.12
The tax rate is the amount levied per $100 of assessed value, as determined by




                                                                                                                                                               $10.15
the State of Maryland Department of Assessments and Taxation. The Mayor and                     $9




                                                                                                                                                      $9.01
                                                                                                                $5.92
Council establish the tax rate each year in order to finance General Fund




                                                                                                       $5.37
activities. In FY 2011, total property taxes are budgeted to constitute                         $7




                                                                                                                                             $7.54
                                                                                                                                    $7.19
approximately 56 percent of the City’s General Fund budget less appropriated




                                                                                                                           $6.31
                                                                                                $5
fund balance.
Real Property Tax                                                                               $3
The City of Rockville’s adopted real property tax rate for FY 2011 totals $0.292 for                 FY02      FY03      FY04      FY05     FY06     FY07     FY08      FY09      FY10      FY11
every $100 of assessed value. The State Department of Assessments and
Taxation (SDAT) reassesses real property every three years, and tax bills are
                                                                                             Constant Yield Tax Rate
based on those assessments. For homeowners, any increase to assessed value
is phased in equally over a three-year period, and the resulting increase in the             In accordance with Maryland law, the constant yield tax rate is defined as the
property tax bill is capped at 10 percent.                                                   property tax rate that would yield the same tax revenue as the previous year, not
                                                                                             including new construction. When assessments increase and the tax rate
For several years both new development and property values increased                         remains unchanged, property tax revenue increases. The constant yield rate is
significantly, providing needed revenue to meet the demand for basic municipal               the rate that would offset the increase in tax revenue that results from the increase
services and maintenance of public facilities. The rate of new private development           in assessed value. For FY 2011, the constant yield rate was calculated to be
has slowed considerably, and most property assessments are decreasing due to                 $0.292 per $100 of assessed value, or identical to the adopted property tax rate.
current economic conditions. The total taxable assessed value from FY 2010 to                In accordance with Maryland law, since the constant yield tax rate is equal to the
FY 2011 is estimated to increase by only 1.4 percent. This shows a major slowing             City's tax rate, the City is not required to advertise the constant yield tax rate or
in assessed values compared to previous fiscal years. All properties in the City             hold a special public hearing.
were reassessed in January 2009 and January 2010, and many properties
experienced significant decreases in their overall assessed values since 2006
and 2007.                                                                                    Assumptions for Real Property Tax:
               History of Taxable Assessed Value of Real Property                            The FY 2011 budget for taxes on real property is based on the following
                 Fiscal                Assessed                                              information sources and assumptions:
                                                               % Change
                  Year                     Value                                                  The calculation of the assessed value begins with an estimate prepared by
         FY02 Actual                       5,365,409,658                 9.9%                     SDAT of the assessed value of all real property that will be on the tax rolls as
         FY03 Actual                       5,921,959,542                10.4%                     of the beginning of FY 2011, based on assessments conducted as of
         FY04 Actual                       6,312,353,479                 6.6%                     January 1, 2010.
         FY05 Actual                       7,193,741,551                14.0%                     The City adds its estimate of the value of residential and commercial
         FY06 Actual                       7,539,816,746                 4.8%                     development that would be completed and assessed during the remainder of
         FY07 Actual                       9,008,163,075                19.5%                     FY 2010 and throughout FY 2011.
         FY08 Actual                     10,148,794,995                 12.7%                     The revenue estimate is based on multiplying the assessed value by the tax
         FY09 Actual                     11,117,285,215                  9.5%                     rate, taking into consideration when new property is levied, the impact of
         FY10 Estimate *                 11,682,940,000                  5.1%                     appeals and late payments, and the possibility of less than anticipated
         FY11 Estimate *                 11,846,829,600                  1.4%                     growth.
      * Estimates are based on assessed value as billed, which is limited by
        exemptions and the three-year phase-in.
                                                                                       3-5
                General Fund Revenues, Detail of Major Revenue Sources
Personal Property Tax                                                                      Real Property Tax Credit
The City of Rockville’s FY 2011 personal property tax rate remains unchanged at            The combined property tax receipts for FY 2011 are expected to amount to $34.8
$0.805 cents per $100 of assessed value. In accordance with Maryland law, the              million, which is a 1.2 percent increase from the FY 2010 adopted budget. The
personal property tax only applies to businesses. The City has enacted the                 real property tax revenue of $31.7 million includes the City's Homeowners' Tax
following exemptions from personal property tax: (1) 82 percent of the value of            Credit Program and a $100 income tax offset credit for residential properties. The
commercial inventory; (2) 82 percent of the value of manufacturing or research             Homeowners' Tax Credit Program is a State administered program that provides
and development inventory; and (3) 100 percent of the value of manufacturing or            real property tax credits to low- to moderate-income residents for property taxes
research and development machinery.                                                        due on their principal residence. Under the City's FY 2011 Program, households
                                                                                           with gross incomes up to $85,000 per year and a household net worth of less than
Over the past few years the total taxable assessed value of personal property in           $200,000 (not including the value of the home or qualified retirement savings)
the City of Rockville has remained relatively flat. This new average assessed              could qualify for tax relief on the first $400,000 of their home's assessed value. For
value is lower than in FY 2002 and FY 2003 mainly due to the number of                     low-income households, the credit could be several hundred dollars with the
businesses that focus on technology. Computers and other types of high tech                maximum credit totaling the City tax due on the first $400,000 of assessed value.
equipment depreciate more rapidly leading to decreases in the overall assessed
value for personal property. The FY 2011 budget assumes the taxable assessed               Property Tax Revenue Summary
value will increase by approximately 1 percent from the FY 2010 estimate.
                                                                                                                             Actual        Adopted         Adopted        %
                                                                                                                             FY09           FY10            FY11        Change
                History of Assessed Value of Personal Property                             Real Property Tax -
                                                                                           Revenues from taxes on
                 Fiscal                      Assessed
                                                                      % Change             assessed value of real estate     31,299,533    31,390,140      31,717,000       1.0%
                 Year                         Value
                                                                                           including land, structures,
         FY02 Actual                              475,731,730               10.3%          and improvements
         FY03 Actual                              471,400,091                -0.9%         Personal Property
         FY04 Actual                              405,552,350              -14.0%          Corporations - Revenue from
                                                                                           taxes on assessed valuation
         FY05 Actual                              401,877,050                -0.9%                                            3,015,904     2,820,000       2,900,000       2.8%
                                                                                           of inventory, furnishings, and
         FY06 Actual                              401,458,510                -0.1%         fixtures of incorporated
         FY07 Actual                              388,343,729                -3.3%         businesses

         FY08 Actual                              394,410,209                 1.6%         Personal Property
         FY09 Actual                              398,207,920                 1.0%         Unincorporated Businesses -
                                                                                           Revenue from taxes on
         FY10 Estimate *                          381,700,000                -4.1%
                                                                                           assessed valuation of                46,717         35,000          45,000     28.6%
         FY11 Estimate *                          385,500,000                 1.0%         inventory, furnishings, and
       * The FY10 and FY11 estimates are based on assessments from SDAT.                   fixtures of unincorporated
         The impact of appeals, late payments, and the collection rate is taken            businesses
         into consideration in the estimates.
                                                                                           Interest on Taxes - Interest on
                                                                                                                               163,896        100,000         100,000       0.0%
                                                                                           delinquent taxes

                                                                                                        Total                34,526,050    34,345,140      34,762,000       1.2%




                                                                                     3-6
                General Fund Revenues, Detail of Major Revenue Sources
Revenue From Other Governments                                                              projected budget deficits, the County is working on a new formula to determine
Income Tax                                                                                  the amount of tax duplication that municipalities will receive in future years
                                                                                            (which may be less favorable to the City).
Income tax revenue is the second largest source of revenue to the General Fund.
Income tax revenue consists of the City’s share of income taxes received by the             Revenue from Other Governments Summary
State of Maryland for returns filed from Rockville. Maryland counties are able to
                                                                                                                             Actual      Adopted      Adopted        %
impose an income tax that is separate from the State income tax. In accordance
                                                                                                                             FY09         FY10         FY11        Change
with Maryland law, municipalities receive 17 percent of collected county income
taxes. Montgomery County’s income tax rate is currently 3.2 percent.                        Income Tax                      10,438,811    9,300,000    9,300,000      0.0%
                                                                                            Highway User                     2,666,415    2,400,000     113,000      -95.3%
There has been growth in income tax receipts in the past few years due to the
                                                                                            Tax Duplication                  2,228,449    2,228,449    1,893,800     -15.0%
City's population growth. However, due to the recent economic downturn, income
tax revenue will likely remain flat. The estimated actual FY 2010 and adopted FY            Police Protection Grant -
2011 income tax revenues total approximately $9.3 million.                                  Federal funds designated for      615,763      620,000      403,000      -35.0%
                                                                                            police protection
                          History of Income Tax Revenue                                     County Grant -
                                                                                                                              183,359      179,575      167,005       -7.0%
                 Fiscal                   Income Tax                                        Linkages to Learning
                                                                 % Change
                 Year                      Revenue
                                                                                            Youth and Family Services
          FY05 Actual                             7,874,409            12.2%                Grant - County and State          123,195      105,402      100,328       -4.8%
                                                                                            payments for youth services
          FY06 Actual                             9,035,343            14.7%
          FY07 Actual                             9,816,933             8.7%                Recreation Grants                  49,671       37,000       20,000      -45.9%
          FY08 Actual                           10,622,311              8.2%                Admissions and Amusements
          FY09 Actual                           10,438,811             -1.7%                Receipts -Taxes on
                                                                                                                               993,354      850,000      950,000     11.8%
          FY10 Estimate                           9,300,000           -10.9%                admissions are returned to
                                                                                            municipalities by the State
          FY11 Estimate                           9,300,000             0.0%
                                                                                            Traffic Signal Maintenance
Highway User                                                                                Reimbursement - from the            9,900        6,600        6,600       0.0%
Highway user revenue represents the City's share of gasoline tax and vehicle                State for maintenance
registrations collected by the State of Maryland. During FY 2010, the State of
Maryland's Board of Public Works voted to decrease the municipal share of                   Cable Franchise Fees - City’s
                                                                                            share of Montgomery County’s
highway user by over 90 percent. This reduction was part of a larger package                                                  436,469      495,798      514,630       3.8%
                                                                                            cable franchise fee and cable
aimed at addressing the State's projected budget shortfall of more than $700
                                                                                            operating grant
million for FY 2010. In mid-FY 2010 the State reported that the reduction in
highway user will continue into FY 2011 and FY 2012, resulting in an annual
                                                                                            Payment in Lieu of Taxes -
revenue budget of $113,000.
                                                                                            Revenue from Montgomery
                                                                                                                               13,266       13,300       13,300       0.0%
Tax Duplication                                                                             County in lieu of financial
                                                                                            corporation taxes
This revenue is received from Montgomery County as a partial reimbursement for
tax duplication. Several factors, such as number of streetlights, the number of             Miscellaneous Grants               42,830        1,600       45,550    2,746.9%
street miles maintained by the City, and what the County spends each year,
                                                                                                         Total              17,801,482   16,237,724   13,527,213     -16.7%
determine what the City receives each year. In FY 2011, Montgomery County
elected to reduce the City's share of tax duplication by 15 percent due to budget
constraints. In addition to the potential for future reductions due to the County's
                                                                                      3-7
                 General Fund Revenues, Detail of Major Revenue Sources
Licenses and Permits                                                                                                          Actual      Adopted     Adopted       %
The largest revenue source in this category, building permits, is estimated to                                                FY09         FY10        FY11       Change
decrease by approximately 27 percent due to the overall decline in development            Fire Review Fees - Revenue
                                                                                                                                57,367      100,000      75,000    -25.0%
activities.                                                                               from fire codes plans review
                                    Actual      Adopted     Adopted       %               Public Works Permits - Fees
                                    FY09         FY10        FY11       Change            paid by contractors for design
                                                                                                                               301,937      160,000     100,000    -37.5%
Traders Licenses - Fees collected                                                         review / inspection services for
from local businesses by the         139,236      90,000       90,000       0.0%          work within rights-of-way
State and returned to the City
                                                                                          Swim Team Dues - Fees paid
                                                                                                                               306,749      340,000     315,000     -7.4%
Building Permits - Revenue from                                                           for the RMSC swim team
permits issued for building                                                               Rec. Membership Fees - Fees
                                     833,994    1,100,000     800,000     -27.3%
construction, electrical work,                                                            paid for memberships to              538,305      702,440     690,500     -1.7%
plumbing, sewer, water, and gas                                                           recreation and swim centers
                                                                                          Recreation and Parks
Rental Licenses - Licensing fee
                                                                                          Concessions - Revenue
for the inspection of single- and    464,260     630,000      630,000       0.0%                                                 5,617       17,500      17,500      0.0%
                                                                                          received from concessions at
multi-family dwellings and hotels
                                                                                          City facilities
Animal Licenses - Revenue from                                                            Facility Rental Fees - Revenue
the sale of dog / cat licenses to     31,076      22,500       28,000      24.4%          received from the rental of City     686,387      747,125     771,700      3.3%
owners within the City                                                                    facilities

Other Non-Business Licenses -                                                             Social Services Fees - Social
Revenue from the issuance of         137,632     112,000      112,000       0.0%          services fees at the Senior           18,712       18,800      18,800      0.0%
other local licenses / permits                                                            Center
              Total                 1,606,198   1,954,500   1,660,000     -15.1%          Special Events Fees -
                                                                                          Corporate sponsorship of City         25,100       20,000      40,000    100.0%
                                                                                          events
Charges for Services                                                                      Rec. Theme Park Tickets -
                                                                                          Revenue from sale of tickets
Revenues in this category come from charges to users who individually benefit                                                  104,592      120,000     120,000      0.0%
                                                                                          to area theme parks through
from a particular service offered by the City. Recreation program fees, the
                                                                                          MD Rec. and Parks Assoc.
largest revenue source in this category, are estimated to increase by 3.6 percent         F. Scott Fitzgerald Theatre
from the FY 2010 adopted budget.                                                          Tickets - Revenue received           290,223      313,000     313,000      0.0%
                                    Actual      Adopted     Adopted       %               from theater ticket sales
                                    FY09         FY10        FY11       Change            Internal City Use of Facilities -
                                                                                          Revenue received from the
Recreation Program Fees             2,567,493   2,657,799   2,753,405       3.6%                                                31,503       24,394      17,000    -30.3%
                                                                                          use of City facilities by City
Zoning Fees                           61,361      50,000       50,000       0.0%          programs and events
Community Support Police -                                                                Pool Merchandise Sales -
charges for community requests        77,695      90,000      104,000      15.6%          Revenue received from                  2,263        2,500       2,500      0.0%
for police at community events                                                            merchandise sold at Swim Ctr
Sale of Materials - revenues from                                                         Pool Admission Charges -
                                      17,177      20,000       20,000       0.0%
City publications                                                                         Revenue received from                232,975      290,000     295,000      1.7%
Fire Safety Fees - Revenue from                                                           admissions to the Swim Ctr
                                     147,730     200,000      150,000     -25.0%
fire inspection / permits                                                                               Total                 5,473,186   5,873,558   5,853,405     -0.3%
                                                                                    3-8
                 General Fund Revenues, Detail of Major Revenue Sources
Fines and Forfeitures                                                                      Other Revenue / Administrative Charges
Revenues received from red light camera infractions make up most of this                   The largest revenue source in this category is administrative charges. These
category. The revenues from the red light camera citations cover the total cost to         charges represent centrally budgeted administrative or "overhead" costs. Each
operate the program. Revenue from red light cameras is estimated to increase               fund pays for its share of the costs through a transfer to the General Fund. In FY
by 5 percent from adopted FY 2010 to adopted FY 2011.                                      2009, the Mayor and Council approved funding for an update to the City's Cost
                                    Actual     Adopted       Adopted       %               Allocation Plan (CAP) to determine if the administrative charges were consistent
                                    FY09        FY10          FY11       Change            with actual operations. The CAP was finalized in FY 2010 and the results showed
                                                                                           that the administrative charges should be increased across all existing funds,
Municipal Infractions - Revenues
                                                                                           and should be added to the Town Center Management District and Speed
received from fines for municipal      9,038      10,000        10,000       0.0%
infractions
                                                                                           Camera funds. For FY 2011, each fund will support its full administrative charge
                                                                                           with the exception of Town Center Management District (3-year phase in) and
Red Light Camera Revenue -                                                                 RedGate Golf Course (per the business plan).
Revenue received from fines for      633,452     600,000       630,000       5.0%                                              Actual          Adopted          Adopted         %
red light infractions                                                                                                          FY09             FY10             FY11         Change
Confiscated Funds - Items seized                                                           Hotel Tax                             624,486          800,000         850,000         6.3%
by City Police during commission       5,988        9,000        5,000     -44.4%          Sale of Vehicles - Proceeds
of a crime                                                                                                                        20,730           36,800           14,800      -59.8%
                                                                                           from the vehicle auction
              Total                  648,477     619,000       645,000       4.2%          Misc. Revenues - Revenues
                                                                                                                                 201,022          152,000         110,500       -27.3%
                                                                                           not categorized elsewhere
Use of Money and Property                                                                  Community Contribution -
Interest earnings is projected to decrease by 90 percent from adopted FY 2010              Contributions from individuals
                                                                                                                                 107,815           70,490           89,860       27.5%
to adopted FY 2011 due to the current short-term interest rate environment.                and groups to sponsor specific
Land rental, now the largest revenue source in this category, is estimated to              programs
double due to the installation of new monopoles on City property.
                                                                                           Other Grant Revenue -
                                    Actual     Adopted       Adopted       %               Mid-year anticipated grant             35,057           20,000           20,000        0.0%
                                    FY09        FY10          FY11       Change            revenue (undesignated)

Interest Earnings - Interest                                                               Recreation Fees (Swim)                     440            1,000             500      -50.0%
received from the investment of      187,830     300,000        30,000     -90.0%          Water Admin. Charge                   431,000          444,000        1,000,110     125.3%
City funds                                                                                 Sewer Admin. Charge                   241,000          248,200         541,650      118.2%
Returned Check Fee                      621          520           600      15.4%          Refuse Admin. Charge                  456,000          469,700         977,470      108.1%
Land Rental - Revenue from                                                                 Parking Admin. Charge                  85,000           87,600         656,980      650.0%
telecommunications companies                                                               Stormwater Management
                                     109,815     120,000       247,330    106.1%                                                 154,000          158,600         604,940      281.4%
for monopoles on City-owned                                                                Admin. Charge
property                                                                                   RedGate Admin. Charge *                95,000           97,900         165,750        69.3%
Building Rental - Revenue from                                                             Town Center Management
                                                                                                                                         -                -         78,090         N/A
the rental of City-owned              32,518      45,855        44,150      -3.7%          District Admin. Charge
buildings                                                                                  Speed Camera Admin. Charge                    -                -        222,320         N/A
              Total                  330,784     466,375       322,080     -30.9%                    Total                       2,451,549         2,586,290       5,332,970     106.2%
                                                                                           * A study that analyzed the financial situation of the golf course was presented to the Mayor
                                                                                           and Council in March 2006. To address the deficit in the Fund, the administrative charge
                                                                                           was reduced by 50 percent for five years, which started in FY07.
                                                                                     3-9
                                                  Enterprise Funds - Water Fund
Enterprise funds are used to account for operations financed and operated in a                        Water Fund       Actual       Adopted       Adopted         %
manner similar to private business enterprises where the cost of expenses,                            Revenues         FY09          FY10          FY11         Change
including both operations and capital, are financed or recovered from the users of
                                                                                              Sales of Materials          4,140        25,000         5,000      -80.0%
the services rather than general taxpayers. The City of Rockville, through the
Financial Management Policies, has designated the following operations as                     Utility Charges          5,183,077    7,000,000     8,600,000       22.9%
enterprise funds: Water, Sewer, Refuse, Stormwater Management, Parking and                    Penalties                  48,477        50,000        50,000        0.0%
RedGate Golf Course.                                                                          Transfer From Sewer       340,000       350,200       308,400      -11.9%
                                                                                              Transfer From Refuse      121,000       124,600       138,100       10.8%
The goals in setting the City's utility rates are low rates over time, while covering
all operating and capital expenses and maintaining required reserves. The City                Misc. Revenue              46,092        28,000        26,750       -4.5%
establishes rates on a multi-year basis to maintain consistency and reduce                    Connection Charges         14,700        50,000        15,000      -70.0%
volatility. In order to set the rates the City uses cash flow models that take into           Interest Income            43,931        40,000         5,800      -85.5%
account factors such as future changes in operating expenses, debt obligations,               Subtotal                 5,801,418    7,667,800     9,149,050       19.3%
and changes in revenues. For setting rates and fees for Parking and RedGate,
                                                                                              Appr. Net Assets                  -             -      35,260         N/A
additional factors such as comparative pricing and user demand are considered.
                                                                                              Total                    5,801,418    7,667,800     9,184,310       19.8%
Water Fund
The Water Fund is used to account for all financial activity associated with the                      Water Fund       Actual       Adopted       Adopted         %
treatment and distribution of potable water. The City provides water service to 70                    Expenses         FY09          FY10          FY11         Change
percent of the City, or approximately 13,000 accounts. In FY 2008, the Department
                                                                                                Salaries               1,870,702    2,298,000     2,371,490        3.2%
of Public Works presented two comprehensive studies that evaluated the City's
overall water program related to the Water Treatment Plant and the Water                        Benefits                677,731       614,000       815,500       32.8%
Distribution System. As a result of these two studies, there are significant                    Overtime                186,592       135,100       135,430        0.2%
operating and capital expenses throughout the FY 2011 budget. In FY 2009, the                 Personnel Subtotal       2,735,025    3,047,100     3,322,420        9.0%
City started a major water line replacement program, which is estimated to replace              Contractual Services    368,410       401,940       469,360       16.8%
over 34 miles of water lines over a 20-year period. The Water Main Rehabilitation
                                                                                                Commodities            1,325,683    1,409,350     1,614,550       14.6%
project, totaling over $76 million, can be found on page 109 of the City's FY 2011
CIP budget.                                                                                   Operating Subtotal       1,694,093    1,811,290     2,083,910       15.1%
                                                                                              Capital Outlay            149,031       163,300        91,700      -43.8%
In order to fund the significant capital and operating expenses necessary to                  Administrative Charge     431,000       444,000     1,000,110      125.3%
support the City's water system, the Mayor and Council approved a five-year                   Other Charges            1,211,708    1,305,000     1,706,000       30.7%
financial plan. Based on the approved financial plan, water usage rates will
                                                                                              Debt Service              744,147       808,400       980,170       21.2%
increase by 25 percent each year through FY 2012. FY 2011 is the third year of
the five-year plan and the rates are as follows: $3.48 per 1,000 gallons for the first        Subtotal                 6,965,004    7,579,090     9,184,310       21.2%
12,000 gallons used in the quarter, $5.01 per 1,000 gallons for the next 12,000               Add. to Net Assets                -      88,710               -   -100.0%
gallons used in the quarter, and $5.37 per 1,000 gallons for usage beyond 24,000              Total                    6,965,004    7,667,800     9,184,310       19.8%
gallons. In addition to the usage rates, the FY 2011 budget will continue with a
ready-to-serve charge that is split between the Water and Sewer funds. The                         Water Fund          Actual       Adopted       Adopted         %
amount of the charge is based on the size of the water meter and ranges from                      by Department        FY09          FY10          FY11         Change
$6.56 to $787.20 per quarter, an increase of 3 percent over the FY 2010 adopted               Finance                   733,479       825,300       836,070        1.3%
budget (see charges on page 3-11).
                                                                                              Public Works             3,715,626    4,016,590     4,470,960       11.3%
                                                                                              Non-Departmental         2,515,899    2,737,200     3,877,280       41.7%
                                                                                              Total                    6,965,004    7,579,090     9,184,310       21.2%
                                                                                     3 - 10
                                                                                     Enterprise Funds - Water Fund
                                    Water Fund Expenses (in millions)                                                                                                                         City of Rockville Water Rate History *
$5                                                                                                                                                                $4.00
                 $3.32                                                       FY10 Adopted                           FY11 Adopted                                                                                                                           $3.70
                                                                                                                                                                  $3.50
       $3.05


$4
                                                                                                                                                                  $3.00


                                         $2.08
$3                                                                                                                                                                                                                                                               $2.95
                                 $1.81                                                                                                                                                                                 $2.26




                                                                                                                    $1.71
                                                                                                                                                                  $2.50                           $2.07
                                                                                                                                                                                      $1.92 $1.99




                                                                                                            $1.31
                                                                                                                                                                          $1.76 $1.85                                          $1.72                     $2.37




                                                                                            $1.00
$2




                                                                                                                                                 $0.98
                                                                                                                                                                  $2.00




                                                                                                                                     $0.81
                                                                                 $0.44
                                                                                                                                                                                                                                         $1.89
                                                                                                                                                                  $1.50
                                                          $0.16

                                                                     $0.09
$1
                                                                                                                                                                  $1.00
$0




                                                                                                                                                                           FY01


                                                                                                                                                                                  FY02


                                                                                                                                                                                               FY03


                                                                                                                                                                                                      FY04


                                                                                                                                                                                                                FY05


                                                                                                                                                                                                                        FY06




                                                                                                                                                                                                                                          FY08


                                                                                                                                                                                                                                                  FY09


                                                                                                                                                                                                                                                            FY10


                                                                                                                                                                                                                                                                     FY11
                                                                                                                                                                                                                                FY07
      Personnel              Operating                    Capital               Admin.                       Other             Debt Service

                                                                                                                                                              * The rates shown above represent the usage charge per 1,000 gallons, assuming an
                                                                                                                                                              average usage of 14,000 gallons per quarter. For FY 2011, Rockville will also charge
                                   Water Fund Revenues (in millions)
                                                                                                                                                              a flat fee of $9.84 per quarter for households with a 3/4 inch meter (see table below).
$10
                                                                                                                                                              Approximately 30 percent of Rockville residents do not receive water service from the
                                                                             FY10 Adopted                           FY11 Adopted                              City, but are serviced by the Washington Suburban Sanitary Commission's (WSSC)
$8
                                                                                                                                                              water system. WSSC's adopted rate for FY 2011 increased by 8.5 percent.
                         $8.60
               $7.00




$6

$4                                                                                                                           $0.47


                                                                                                                                             $0.45
                                                                                                                                                              The table below reflects the fixed quarterly charge that is based on meter size. The
                                                                                         $0.14


                                                                                                    $0.09
                                                  $0.05


                                                                  $0.02




$2
                                                                                                                                                              charge is split evenly between Water and Sewer funds.
$0
        Utility Charges                          Connection                                 Other                           Transfers In                                          Meter
                                                                                                                                                                                                             FY10              FY11              Increase
                                                  Charges                                                                                                                         Size
                                                                                                                                                                                    5/8"                        6.37                   6.56                 3%
                                                                                                                                                                                    3/4"                        9.56                   9.84                 3%
                                                                                                                                                                                         1"                    15.93             16.40                      3%
                                                                                                                                                                                  1 1/2"                       31.85             32.80                      3%
                                                                                                                                                                                         2"                    50.96             52.48                      3%
                                                                                                                                                                                         3"                   101.92            104.96                      3%
                                                                                                                                                                                         4"                   159.25            164.00                      3%
                                                                                                                                                                                         6"                   318.50            328.00                      3%
                                                                                                                                                                                         8"                   509.60            524.80                      3%
                                                                                                                                                                                     10"                      764.40            787.20                      3%



                                                                                                                                                         3 - 11
                                                Enterprise Funds - Sewer Fund
Sewer Fund                                                                                         Sewer Fund        Actual       Adopted       Adopted         %
The Sewer Fund accounts for the financial activity associated with the collection                   Revenues         FY09          FY10          FY11         Change
of sewage. Charges are based on water consumption. Nearly all of the capital               Utility Charges           5,888,428    6,580,000     7,755,000       17.9%
costs in the Sewer Fund, and a substantial portion of the operating costs, are
                                                                                           Penalties                   55,768        65,000        50,000      -23.1%
payments for the operation of and capital improvements to the District of
Columbia Water and Sewer Authority’s (DCWASA) Blue Plains Advanced                         Connection Charges          21,200        50,000        15,000      -70.0%
Wastewater Treatment Plant. The City’s share of Blue Plains’ capital                       Interest Income             49,566        50,000         2,000      -96.0%
improvements is proportionate to the City’s allocation of treatment capacity. The          Premium on Bonds Sold        6,815               -             -       N/A
Blue Plains Wastewater Treatment CIP project contains additional information               Other                      253,844         2,000         2,000        0.0%
regarding the City’s capital costs for sewer treatment.
                                                                                           Subtotal                  6,275,621    6,747,000     7,824,000       16.0%
The Sewer Fund budget for FY 2011 is based on a sewer charge of $4.66 per                  Appr. Net Assets                   -             -     351,290         N/A
1,000 gallons. This is an increase of $0.54 or 13 percent over the FY 2010                 Total                     6,275,621    6,747,000     8,175,290       21.2%
adopted rate of $4.12 per 1,000 gallons. This increase is greater than the original
plan adopted by the Mayor and Council in FY 2008 because the City's
contribution to the Blue Plains Advanced Wastewater Treatment Plant increased                      Sewer Fund        Actual       Adopted       Adopted         %
significantly in FY 2010, and will continue to increase in FY 2011 and future years                 Expenses         FY09          FY10          FY11         Change
(including an additional $15 million that is needed in the CIP for FY 2011 through            Salaries                815,101       972,900     1,032,700        6.1%
FY 2015). In addition to the sewer charge, users pay a ready-to-serve charge that             Benefits                314,575       267,500       360,950       34.9%
is split equally between the Water and Sewer funds. The amount of the charge is
                                                                                              Overtime                 90,175        87,490        87,500        0.0%
based on the size of the water meter and ranges from $6.56 to $787.20 per
quarter, an increase of 3 percent over the FY 2010 adopted budget (see charges             Personnel Subtotal        1,219,851    1,327,890     1,481,150       11.5%
on page 3-13).                                                                                Contractual Services   2,538,835    2,961,300     3,227,720        9.0%
                                                                                              Commodities             118,286       194,990       195,590        0.3%
Revenue projections for the fund are based upon the City's growth forecast
regarding development planned for future years. The number of planned and                  Operating Subtotal        2,657,122    3,156,290     3,423,310        8.5%
current sewer accounts is then multiplied by the estimated rates for the fund.             Capital Outlays             18,877        24,800        41,000       65.3%
Sewer Fund revenues, utility charges, connections, and penalties, are projected            Administrative Charge      241,000       248,200       541,650      118.2%
to total $7.8 million for FY 2011.
                                                                                           Other / Transfers         1,145,783    1,255,200     1,813,400       44.5%
                                                                                           Debt Service               734,352       693,800       874,780       26.1%
                                                                                           Subtotal                  6,016,986    6,706,180     8,175,290       21.9%
                                                                                           Addition to Net Assets             -      40,820               -   -100.0%
                                                                                           Total                     6,016,986    6,747,000     8,175,290       21.2%


                                                                                                Sewer Fund           Actual       Adopted       Adopted         %
                                                                                               by Department         FY09          FY10          FY11         Change
                                                                                           Public Works              3,898,343    4,386,280     4,815,460        9.8%
                                                                                           Non-Departmental          2,118,643    2,319,900     3,359,830       44.8%
                                                                                           Total                     6,016,986    6,706,180     8,175,290       21.9%




                                                                                  3 - 12
                                                                         Enterprise Funds - Sewer Fund
                               Sewer Fund Expenses (in millions)                                                                                                City of Rockville Sewer Rate History *
$5                                                                                                                                 $5.00
                                                               FY10 Adopted                   FY11 Adopted                         $4.75
                                                                                                                                                                                                                             $4.66




                                         $3.42
                                                                                                                                   $4.50



                                 $3.16
$4
                                                                                                                                   $4.25
                                                                                                                                                                                                                                    $4.12
$3                                                                                                                                 $4.00                                                 $3.75
                                                                                                                                                                                 $3.61




                                                                                     $1.85
                                                                                                                                   $3.75                                $3.50                                        $3.97
                                                                                                                                                                $3.38                                       $3.82
               $1.48




                                                                                                                                   $3.50           $3.25
      $1.33




                                                                             $1.28
$2                                                                                                                                         $3.12                                                 $3.63
                                                                                                                                   $3.25




                                                                                                                  $0.87
                                                                                                          $0.69
                                                                 $0.54
                                                                                                                                   $3.00

                                                       $0.25
$1                                                                                                                                 $2.75
                                                                                                                                   $2.50




                                                                                                                                            FY01


                                                                                                                                                    FY02


                                                                                                                                                                 FY03


                                                                                                                                                                         FY04


                                                                                                                                                                                  FY05


                                                                                                                                                                                          FY06




                                                                                                                                                                                                                     FY09


                                                                                                                                                                                                                             FY10


                                                                                                                                                                                                                                       FY11
$0




                                                                                                                                                                                                   FY07


                                                                                                                                                                                                             FY08
     Personnel                  Operating              Admin.                  Other                   Debt Service
                                                                                                                               * The rates shown above represent the usage charge per 1,000 gallons. Rockville
                                                                                                                               also charges a flat fee that is $9.84 per quarter for households with a 3/4 inch meter
                                                                                                                               (see table below). Approximately 30 percent of Rockville residents do not receive
                               Sewer Fund Revenues (in millions)
                                                                                                                               sewer service from the City, but are serviced by the Washington Suburban Sanitary
$8
                                                                                                                               Commission's (WSSC) sewer system. WSSC’s adopted rate for FY 2011 increased
                                                              FY10 Adopted                   FY11 Adopted                      by 8.5 percent.
                       $7.76




$6
              $6.58




$4
                                                                                                                               The table below reflects the fixed quarterly charge that is based on meter size. The
                                                                                                                               charge is split evenly between Water and Sewer funds.
$2
                                                                                               $0.12
                                                      $0.05




                                                                                                         $0.05
                                                                $0.02




                                                                                                                                                    Meter
                                                                                                                                                                                FY10             FY11               Increase
                                                                                                                                                    Size
$0
         Utility Charges                         Connection Charges                             Other                                                  5/8"                        6.37                   6.56               3%
                                                                                                                                                       3/4"                        9.56                   9.84               3%
                                                                                                                                                           1"                     15.93              16.40                   3%
                                                                                                                                                     1 1/2"                       31.85              32.80                   3%
                                                                                                                                                           2"                     50.96              52.48                   3%
                                                                                                                                                           3"                    101.92           104.96                     3%
                                                                                                                                                           4"                    159.25           164.00                     3%
                                                                                                                                                           6"                    318.50           328.00                     3%
                                                                                                                                                           8"                    509.60           524.80                     3%
                                                                                                                                                       10"                       764.40           787.20                     3%


                                                                                                                          3 - 13
                                                       Enterprise Funds - Refuse Fund
Refuse Fund                                                                                                                 Refuse Fund                        Actual               Adopted                Adopted               %
The Refuse Fund is used to account for the financial activity associated with the                                            Expenses                          FY09                  FY10                   FY11               Change
collection and disposal of recycling, refuse, and yardwaste. The FY 2011 refuse                                         Salaries                               1,699,783                 1,993,400              1,765,230         -11.4%
budget is based on a semi-automated once per week recycling and refuse                                                  Benefits                                684,116                   576,300                699,620               21.4%
program. The refuse rate for the FY 2011 budget will remain the same as the
                                                                                                                        Overtime                                169,214                   119,000                118,910               -0.1%
adopted FY 2010 rate of $392.40 per year. The semi-automated once per week
system provides reduced operating expenses because less personnel,                                                  Personnel Subtotal                         2,553,113                 2,688,700              2,583,760              -3.9%
contractual services, commodities, and vehicles and equipment are needed.                                               Contractual Services                   1,223,325                 1,504,850              1,396,240              -7.2%
Because of these reduced operating expenses, the rate has remained the same                                             Commodities                             311,950                   361,065                324,120          -10.2%
since FY 2008.                                                                                                      Operating Subtotal                         1,535,275                 1,865,915              1,720,360              -7.8%
                                                                                                                    Capital Outlays                              51,885                    11,000                       -      -100.0%
Revenue projections for the fund are based upon the City’s growth forecast
regarding development planned for future years. The number of planned and                                           Administrative Charge                       456,000                   469,700                977,470         108.1%
current refuse accounts is multiplied by the estimated rates for the fund. Refuse                                   Other / Transfers                           402,849                   301,100                490,100               62.8%
Fund revenue is projected to be $5.5 million for FY 2011, net of interest income                                    Debt Service                                130,708                   116,600                101,700          -12.8%
and transfer from the General Fund.                                                                                 Subtotal                                   5,129,830                 5,453,015              5,873,390               7.7%
        Refuse Fund                   Actual          Adopted                 Adopted             %                 Addition to Net Assets                                -                40,285                       -      -100.0%
         Revenues                     FY09             FY10                    FY11             Change              Total                                      5,129,830                 5,493,300              5,873,390               6.9%
  Customer Charges                    5,352,476        5,374,900              5,450,000            1.4%
  Penalties                             64,578            60,000                  60,000           0.0%                   Refuse Fund                          Actual               Adopted                Adopted               %
  Interest Income                       36,194            20,000                     2,000       -90.0%                  by Department                         FY09                  FY10                   FY11               Change
  Transfer General Fund *               30,000            30,000                  41,200          37.3%             Public Works                               3,933,956                 4,404,115              4,127,020              -6.3%
  Premium on Bonds Sold                  3,026                    -                         -       N/A             Non-Departmental                           1,195,875                 1,048,900              1,746,370              66.5%
  Sale of Materials / Other            115,784             8,400                          350    -95.8%             Total                                      5,129,830                 5,453,015              5,873,390               7.7%
  Subtotal                            5,602,058        5,493,300              5,553,550            1.1%
  Appr. Net Assets                             -                  -             319,840             N/A
                                                                                                                                             Refuse Fund Expenses (in millions)
   Total                           5,602,058        5,493,300      5,873,390                       6.9%            $4
* Supports refuse pickup for Rockville Housing Enterprises (RHE) housing units.
                                                                                                                                                                                FY10 Adopted                     FY11 Adopted

                                                                                                                             $2.69

                                                                                                                                     $2.58
                          Refuse Fund Revenues (in millions)                                                       $3
 $6




                                                                                                                                               $1.87

                                                                                                                                                       $1.72
                                                   FY10 Adopted                FY11 Adopted
                      $5.37




 $5
                              $5.45




                                                                                                                   $2




                                                                                                                                                                                 $0.98
 $4




                                                                                                                                                                                                        $0.49
                                                                                                                                                                        $0.47
 $3




                                                                                                                                                                                                $0.31
                                                                                                                   $1




                                                                                                                                                                                                                       $0.12

                                                                                                                                                                                                                               $0.10
 $2
                                                                      $0.12


                                                                                  $0.10




 $1                                                                                                                $0
 $0                                                                                                                         Personnel         Operating                 Admin.                    Other              Debt Service
                 Customer Charges                                         Other

                                                                                                          3 - 14
                          Enterprise Funds - Stormwater Management Fund
Stormwater Management Fund                                                                            SWM Fund                     Actual                   Adopted             Adopted                 %
The Stormwater Management (SWM) Fund accounts for the financial activity                              Expenses                     FY09                      FY10                FY11                 Change
associated with maintaining existing SWM facilities and constructing new                        Salaries                                   902,153           1,272,900           1,316,300                    3.4%
facilities. In FY 2008, Public Works staff recommended that a stormwater utility
                                                                                                Benefits                                   285,492             336,800            436,070                    29.5%
fee would be needed to fund Rockville's existing and expanded stormwater,
storm drainage and water quality programs. Historically, new development has                    Overtime                                     9,558                 4,930            8,010                    62.5%
funded much of Rockville's stormwater management with fees imposed on                         Personnel Subtotal                    1,197,202                1,614,630           1,760,380                    9.0%
developers. With few opportunities for new development, new funding sources                     Contractual Services                       282,737             501,335            482,780                     -3.7%
were needed to cover new programs and the maintenance of the public                             Commodities                                 49,687              92,665            123,950                    33.8%
stormwater infrastructure.
                                                                                              Operating Subtotal                           332,425             594,000            606,730                     2.1%
In FY 2008 the Mayor and Council approved an ordinance to amend the City                      Capital Outlays                               22,108                 2,450                       -            -100.0%
Code to include a new Stormwater Management Utility Fee. This ordinance                       Administrative Charge                        154,000             158,600            604,940                   281.4%
enables the City to charge an annual fee per Equivalent Residential Unit ("ERU").
                                                                                              Other / Transfers                            166,105             200,000            275,000                    37.5%
Although the Mayor and Council adopted the ordinance that enabled the fee, no
fee was adopted in FY 2009. The expenses for the new program in FY 2009 were                  Debt Service                                           -                    -         3,600                      N/A
funded from the Stormwater Management Fund's reserve. For the FY 2010                         Total                                 1,871,840                2,569,680           3,250,650                   26.5%
budget, a fixed fee of $40.00 per ERU was implemented, which is estimated to
generate $1.6 million in fee revenue. For FY 2011 the utility fee will increase to
$49.20, as approved by the Mayor and Council in April 2009. Each residential
                                                                                                                             SWM Fund Revenues (in millions)
property will pay $49.20 or one ERU per year, and each commercial property will              $2.0
pay $49.20 multiplied by the number of ERUs measured on their property.




                                                                                                                     $1.99
                                                                                             $1.5                                                    FY10 Adopted               FY11 Adopted




                                                                                                            $1.62
          SWM Fund             Actual        Adopted        Adopted         %
          Revenues             FY09           FY10           FY11         Change             $1.0




                                                                                                                                   $0.20




                                                                                                                                                                $0.20
  SWM Utility Fee                       -     1,620,000      1,985,000      22.5%




                                                                                                                                                                        $0.08




                                                                                                                                                                                      $0.07
                                                                                                                                             $0.04
                                                                                             $0.5




                                                                                                                                                                                                   $0.01
  SWM Permits                     37,875        200,000         40,000     -80.0%
  Regional SWM                                                                               $0.0
                                 111,380        200,000         80,000     -60.0%
    Participation Fees                                                                                  SWM Utility             SWM Permits                 Particpate. Fees      Interest Earnings
  Other / Interest Earnings      627,058         65,000          6,500     -90.0%
  Subtotal                       776,314      2,085,000      2,111,500       1.3%
                                                                                                                             SWM Fund Expenses (in millions)
  Approp. Net Assets                    -       484,680      1,139,150     135.0%            $2.0
  Total                          776,314      2,569,680      3,250,650      26.5%
                                                                                             $1.5                                                        FY10 Adopted            FY11 Adopted
                                                                                                                    $1.76
                                                                                                            $1.61


        SWM Fund               Actual        Adopted        Adopted         %




                                                                                                                                             $0.61




                                                                                                                                                                        $0.60
                                                                                                                                   $0.59
                                                                                             $1.0
      by Department            FY09           FY10           FY11         Change




                                                                                                                                                                                                    $0.28
                                                                                                                                                                                       $0.20
                                                                                                                                                                $0.16
  Mayor and Council                2,474               -              -       N/A            $0.5
  Public Works                 1,489,329      2,189,180      2,306,910       5.4%
                                                                                             $0.0
  Non-Departmental               380,037        380,500        943,740     148.0%
                                                                                                           Personnel              Operating                     Admin.                   Other
  Total                        1,871,840      2,569,680      3,250,650      26.5%
                                                                                    3 - 15
                                               Enterprise Funds - Parking Fund
Parking Fund                                                                                      Parking Fund        Actual       Adopted       Adopted         %
The Parking Fund was created to account for the revenue and expenses from                          Revenues           FY09          FY10          FY11         Change
parking related activities, including the issuance of parking tickets, the parking           Real Property Tax         209,005       137,000       163,000       19.0%
meter program, and costs associated with the operation of the three public
                                                                                             County Contribution       310,000       310,000       295,000       -4.8%
parking garages in the City’s Town Center.
                                                                                             Parking Meters            982,403     1,217,000     1,110,000       -8.8%
In order to manage the operational costs and debt service of the three public                Parking Violations        685,934       533,000       660,000       23.8%
garages within Town Center, the Town Center Parking District was formed. The                 From General Fund         950,000     1,200,000     1,030,000      -14.2%
Parking District is a special taxing district that levies a real property tax against
                                                                                             Interest Earnings          41,093        40,000         4,000      -90.0%
the commercial properties within the Town Square boundaries. The Parking
District Tax rate for FY 2011 will increase by 10 percent to $0.33 per $100 of               Other                       2,553               -             -       N/A
assessed value in addition to the $0.292 rate on all real property within the City.          Subtotal                 3,180,989    3,437,000     3,262,000       -5.1%
This tax will provide a contribution of approximately $163,000 towards funding the           Appr. Net Assets                  -     232,540     1,156,715      397.4%
District. Additional revenue includes a $115,000 PILOT payment and a $180,000                Total                    3,180,989    3,669,540     4,418,715       20.4%
capital contribution payment from Montgomery County.

The current parking rate in the Town Center garages is $1.00 per hour Monday                      Parking Fund        Actual       Adopted       Adopted         %
through Friday, 7:00 am to 6:00 pm, a $1.00 flat fee from Monday through Friday,                   Expenses           FY09          FY10          FY11         Change
6:00 pm to 10:00 pm, and $1.00 flat fee for all day Saturdays. Under the current
                                                                                               Salaries                257,176       296,100       254,290      -14.1%
assumptions, the FY 2011 Parking Fund will support 5.9 full-time positions (a
decrease of 1.0 FTE Parking Enforcement Officer), the operating cost and                       Benefits                 87,404        71,900        93,375       29.9%
management of the garages, and annual debt service.                                            Overtime                  4,581         8,500         9,600       12.9%
                                                                                             Personnel Subtotal        349,161       376,500       357,265       -5.1%
In addition to the revenues raised by the Parking Fund, the FY 2011 budget
                                                                                               Contractual Services    608,644       807,230       954,270       18.2%
includes a $1.03 million transfer from the General Fund (which includes the City's
capital contribution of $53,000 and the City's PILOT of $37,000) to support the                Commodities             107,868       277,310       236,190      -14.8%
parking enterprise. Staff recommends continuing with a General Fund transfer                 Operating Subtotal        716,511     1,084,540     1,190,460        9.8%
until parking revenues offset more Parking Fund expenses, which includes the                 Capital Outlays                   -       1,300               -   -100.0%
debt service on $36 million of bonds issued to support the construction of the
                                                                                             Administrative Charge      85,000        87,600       656,980      650.0%
Town Center parking garages.
                                                                                             Other / Transfers         805,800       706,500       826,500       17.0%
                                                                                             Debt Service             1,441,711    1,413,100     1,387,510       -1.8%
                                                                                             Total                    3,398,183    3,669,540     4,418,715       20.4%


                                                                                                  Parking Fund        Actual       Adopted       Adopted         %
                                                                                                 by Department        FY09          FY10          FY11         Change
                                                                                             Police                    255,538       322,800       353,230        9.4%
                                                                                             Public Works                4,650         4,540         4,520       -0.4%
                                                                                             Recreation and Parks      764,132     1,036,900     1,090,375        5.2%
                                                                                             Non-Departmental         2,373,863    2,305,300     2,970,590       28.9%
                                                                                             Total                    3,398,183    3,669,540     4,418,715       20.4%


                                                                                    3 - 16
                                                                              Enterprise Funds - Parking Fund
                             Parking Fund Revenues (in millions)
$2.5
                                                                            FY10 Adopted                           FY11 Adopted
$2.0




                                                         $1.22




                                                                                                          $1.20
                                                                 $1.11




                                                                                                                   $1.03
$1.5




                                                                                          $0.66
                                                                                  $0.53
$1.0
                              $0.31

                                         $0.30
                  $0.16
         $0.14




                                                                                                                                 $0.04

                                                                                                                                           $0.00
$0.5

$0.0
       Property Tax           County                     Parking               Parking                    General              Interest /
                              Contrib.                   Meters               Violations                   Fund                  Other



                             Parking Fund Expenses (in millions)
$2.5
                                                                            FY10 Adopted                           FY11 Adopted
$2.0



                                                                                                                             $1.41

                                                                                                                                         $1.39
                                                 $1.19
                                       $1.08




$1.5
                                                                                                           $0.83
                                                                                                  $0.71
                                                                              $0.66




$1.0
          $0.38

                     $0.36




                                                                    $0.09




$0.5


$0.0
         Personnel                    Operating                      Admin.                         Other                  Debt Service




                                                                                                                                                   3 - 17
                              Enterprise Funds - RedGate Golf Course Fund
RedGate Golf Course                                                                                     Golf Fund                            Actual                Adopted             Adopted                   %
                                                                                                        Expenses                             FY09                   FY10                FY11                   Change
The RedGate Golf Fund is used to account for the financial activity associated
with the City's public golf course. After covering all of its operating, overhead and             Salaries                                      614,863                  622,300              647,020                     4.0%
capital costs for nearly thirty years, RedGate began operating in the red in FY                   Benefits                                      168,170                  156,000              199,380                 27.8%
2000. In response to financial losses over several years, in May 2006 staff
                                                                                                  Overtime                                          22,058                26,800                26,800                    0.0%
presented a business plan to the Mayor and Council that analyzed the financial
                                                                                                Personnel Subtotal                              805,091                  805,100              873,200                     8.5%
situation of the golf course. The business plan focused on achieving the objective
of generating sufficient revenues through fees and charges in order to pay for the                Contractual Services                          138,743                  165,755              157,690                     -4.9%
costs of operations, capital outlay, and infrastructure improvements. FY 2011 will                Commodities                                   261,032                  333,185              288,360               -13.5%
be the fifth year of the five-year business plan.                                               Operating Subtotal                              399,775                  498,940              446,050               -10.6%
Although there have been several changes made since the business plan was                       Capital Outlays                                     86,239                83,700                95,700                14.3%
adopted, the Fund continues to have a growing deficit estimated at $1.6 million                 Administrative Charge                               95,000                97,900              165,750                 69.3%
by the end of FY 2010. Some of the changes recommended by the business plan
                                                                                                Other / Transfers                               110,139                  120,100              100,100               -16.7%
that the City made over the last three years include: transferring $372,500 from
the General Fund to the RedGate Golf Fund to support capital improvements to                    Debt Service                                        11,944                11,600                10,900                    -6.0%
the course, reducing the administrative charge to the General Fund by half                      Total                                        1,508,188              1,617,340            1,691,700                        4.6%
($540,350 in total), and intensifying overall marketing efforts. In addition to the
changes recommended by the business plan, and in an attempt to increase                               Golf Fund                              Actual                Adopted             Adopted                   %
revenues, the Mayor and Council increased green fees in 2009.                                       by Department                            FY09                   FY10                FY11                   Change
                                                                                                Public Works                                        14,717                18,240                15,610              -14.4%
Recognizing that the financial situation of the Fund is not improving, the Mayor
and Council directed staff to research alternative management options available                 Recreation and Parks                         1,144,675              1,310,600            1,321,540                        0.8%
to RedGate. Pending completion of that research and further direction by the                    Non-Departmental                                348,795                  288,500              354,550                 22.9%
Mayor and Council, FY 2011 will continue with the business plan, which allows                   Total                                        1,508,188              1,617,340            1,691,700                        4.6%
for RedGate's administrative charge to be reduced by half.
                                                                                                                               Golf Fund Revenues (in thousands)
          Golf Fund             Actual         Adopted        Adopted         %
                                                                                              $1,000
          Revenues              FY09            FY10           FY11         Change
                                                                                                $800                                                                                          FY10 Adopted




                                                                                                                    $890
  Golf Course Fees                827,324         889,576        779,580      -12.4%




                                                                                                                                                         $310
                                                                                                                              $780
                                                                                                $600                                                                                          FY11 Adopted




                                                                                                                                                                     $220
  Cart Rentals                    230,766         309,832        219,830      -29.0%            $400




                                                                                                                                                                                               $20


                                                                                                                                                                                                             $18
  Pro Shop Rental                   4,250           4,250          2,790      -34.4%            $200
  Driving Range Fee                 1,651           1,605          1,600       -0.3%              $0
                                                                                                             Golf Course Fees                           Cart Rentals                                 Other
  Concessions / Other              12,159          13,910         13,910        0.0%
  Trans. from General Fund         93,000                -              -        N/A
  Subtotal                      1,169,150       1,219,173      1,017,710      -16.5%                                          Golf Fund Expenses (in thousands)
                                                                                              $1,000
  Approp. Net Assets                     -        398,167        673,990      69.3%


                                                                                                                                      $499

                                                                                                                                             $446
                                                                                               $750                                                             FY10 Adopted                  FY11 Adopted
  Total                         1,169,150       1,617,340      1,691,700        4.6%
                                                                                                                       $873
                                                                                                             $805




                                                                                                                                                                                       $166
                                                                                               $500




                                                                                                                                                                                                        $132

                                                                                                                                                                                                                   $111
                                                                                                                                                                               $98
                                                                                                                                                                   $96
                                                                                                                                                             $84
                                                                                               $250
                                                                                                  $0
                                                                                                          Personnel                  Operating               Capital               Admin.                Other

                                                                                     3 - 18
                              Governmental Funds - Special Activities Fund
Special revenue funds are used to account for the proceeds of specific revenue                Special Activities Fund        Actual          Adopted         Adopted          %
sources that are restricted by legal, regulatory, and policy provisions to finance               by Department               FY09             FY10            FY11          Change
specific activities. Included in the special revenue funds are the Special
                                                                                              City Manager                      54,433          501,900         408,800       -18.5%
Activities, Community Development Block Grant, Town Center Management
District, and Speed Camera funds.                                                             Public Works                     106,740          161,700         164,050         1.5%
                                                                                              Recreation and Parks             339,931          767,480         451,390       -41.2%
Special Activities Fund                                                                       Total                            501,105        1,431,080       1,024,240       -28.4%
The Special Activities Fund receives revenues from fundraising and community
activities, payment-in-lieu programs, as well as from a variety of corporations and              Special Activities          Actual          Adopted         Adopted          %
community service organizations. These revenues are deposited into separate                      Fund by Program             FY09             FY10            FY11          Change
accounts and then used for specific purposes related to those accounts. The
amount that is appropriated each year is directly related to the overall revenues             Art in Public Architecture*      115,555          100,000           15,500      -84.5%
received in the past years, and projected revenues for the next year (these                   Art in Public Places*             70,668          275,000         114,000       -58.5%
accounts are not funded by general tax revenues). There are currently 14 active               Bikeway Program                   11,839           35,600           21,910      -38.5%
accounts in the FY 2010 budget that will continue in FY 2011.                                 Cable TV Equipment*               53,808          501,900         408,800       -18.5%
  Special Activities Fund       Actual        Adopted        Adopted        %                 Croydon Creek
                                                                                                                                  2,464          20,100           16,300      -18.9%
        Revenues                FY09           FY10           FY11        Change                 Nature Center
  Mansion Rentals                 20,000          20,000         20,000       0.0%            Forest and Tree
                                                                                                                                 14,000            6,000           6,000        0.0%
  Community Contributions        136,921        124,900        123,500       -1.1%               Preservation
  Developer Contributions        296,120        161,700        161,700        0.0%            Friends of the Arts               42,000          113,480         113,480         0.0%
  Cable Capital Grants           362,909        272,332        408,800       50.1%            Glenview Mansion                  25,209           21,100           21,000       -0.5%
  Other / Money & Prop.             9,761       149,466           5,200     -96.5%            Holiday Drive                     19,122           25,000           25,000        0.0%
  Trans. from General Fund               -              -         8,530        N/A            Housing Opportunities **                -                -                -         N/A
  Subtotal                       825,711        728,398        727,730       -0.1%            Park Maintenance                    1,320          51,200           42,600      -16.8%
  Approp. Net Assets                     -      702,682        296,510      -57.8%            Recreation                        25,389           93,500           60,500      -35.3%
  Total                          825,711       1,431,080      1,024,240     -28.4%            Rockville Emergency
                                                                                                                                  7,425          19,400            8,000      -58.8%
                                                                                                Assistance Program
     Special Activities         Actual        Adopted        Adopted        %                 Senior Assistance                   5,565           7,100            7,100        0.0%
    Fund Expenditures           FY09           FY10           FY11        Change              Transportation Demand
                                                                                                                               106,740          161,700          164,050        1.5%
    Salaries                        7,993         22,800         23,760       4.2%               Management ***
    Benefits                        2,462           400           1,820    355.0%            Total                                  501,105        1,431,080         1,024,240  -28.4%
  Personnel Subtotal              10,455          23,200         25,580      10.3%        * These programs transferred from the Capital Improvements Program to the Special
                                                                                          Activities Fund during FY 2009.
    Contractual Services                 -      128,000        127,600       -0.3%
                                                                                          ** The Housing Opportunities balance is approximately $333,000. Until a major project is
    Commodities                  248,451        568,880        291,360      -48.8%        identified, the balance will not be appropriated in the budget.
  Operating Subtotal             248,451        696,880        418,960      -39.9%        *** The Transportation Demand Management balance is approximately $1.9 million. Until a
                                                                                          major project is identified, the full balance will not be appropriated in the budget.
  Capital Outlays                184,698        563,000        469,800      -16.6%
  Other / Transfers               57,502        148,000        109,900      -25.7%
  Total                          501,105       1,431,080      1,024,240     -28.4%
                                                                                     3 - 19
             Governmental Funds - CDBG and Town Center Management
Community Development Block Grant Fund                                                       The FY 2011 budget includes 10 percent increases to the Town Square Street
The Community Development Block Grant (CDBG) Fund is a special revenue                       and Area Lighting District and the Town Square Commercial District tax rates,
fund supported by a sub-grant of federal funds via Montgomery County. The                    which will generate a total of $930,000 in Town Center Management District Fund
annual budget for this fund consists of unexpended prior years’ grants as well as            tax revenues. The 10 percent increases are necessary in order to raise enough
the next year's anticipated grant and is based on the latest information available           revenue to cover the increased annual operating expenditures, and to close the
from Montgomery County.                                                                      accumulated deficit in the Fund. The tax rate for the Street and Area Lighting
                                                                                             District will increase from $0.105 to $0.116 per $100 of assessed value, and the
          CDBG Fund              Actual         Adopted         Adopted         %            tax rate for the Commercial District will increase from $1.20 to $1.32 per $100 of
          Revenues *             FY09            FY10            FY11         Change         assessed value. Overall, the FY 2011 total expenditure budget is approximately
  CDBG Block Grant                 292,501         304,000         289,000       -4.9%       23.5 percent higher than the FY 2010 adopted budget.
  Prior Years' Approp.                    -        304,000         325,348       7.0%                    TCMD Fund          Actual        Adopted        Adopted         %
  Total                            292,501         608,000         614,348       1.0%                     Revenues          FY09           FY10           FY11         Change

                                                                                                 Real Property Tax          1,020,711        719,600        930,000      29.2%
       CDBG Fund                 Actual         Adopted         Adopted         %                Other                          1,694               -              -       N/A
      Expenditures *             FY09            FY10            FY11         Change             Total                      1,022,405        719,600        930,000      29.2%
     Salaries                       10,066         107,000         101,030       -5.6%
     Benefits                        1,170           9,500          18,970      99.7%                 TCMD Fund             Actual        Adopted        Adopted         %
     Overtime                             -               -               -        N/A               Expenditures           FY09           FY10           FY11         Change
  Personnel Subtotal                11,236         116,500         120,000       3.0%              Salaries                          -        32,300         32,250      -0.2%
     Contractual Services          281,265         491,500         494,348       0.6%              Benefits                          -         6,000          9,595      59.9%
     Commodities                          -               -               -        N/A           Personnel Subtotal                  -        38,300         41,845       9.3%
  Operating Subtotal               281,265         491,500         494,348       0.6%              Contractual Services       744,117        552,600        586,350       6.1%
  Total                            292,501         608,000         614,348       1.0%              Commodities                 15,135         78,700        120,400      53.0%
                                                                                                 Operating Subtotal           759,252        631,300        706,750      12.0%
        CDBG Fund                Actual         Adopted         Adopted         %                Administrative Charge               -              -        78,090        N/A
      by Department *            FY09            FY10            FY11         Change             Subtotal                     759,252        669,600        826,685      23.5%
  CPDS                             292,501         608,000         614,348       1.0%            Addition to Fund Balance            -        50,000        103,315     106.6%
  Total                            292,501         608,000         614,348       1.0%            Total                        759,252        719,600        930,000      29.2%
* Actual FY09 represents one fiscal year, while Adopted FY10 and Adopted FY11 represent
the current fiscal year plus the prior years' appropriations or expenditures.                         TCMD Fund             Actual        Adopted        Adopted         %
                                                                                                     by Department          FY09           FY10           FY11         Change
Town Center Management District Fund                                                             CPDS                         759,252               -              -       N/A
The Town Square Street and Area Lighting District (residential and commercial)                   Recreation and Parks                -       669,600        728,595       8.8%
and the Town Square Commercial District (only commercial) were created in FY                     Non-Departmental                    -              -        98,090        N/A
2008 to support the maintenance and operational costs of the Town Center
                                                                                                 Total                        759,252        669,600        826,685      23.5%
Management District. These two districts levy special property taxes on the
properties within the Town Square boundaries to support the total annual
expenditure budget for the Town Center Management District Fund.

                                                                                        3 - 20
                                       Governmental Funds - Speed Camera Fund
Speed Camera Fund                                                                         Speed Camera Fund         Actual       Adopted       Adopted         %
The Speed Camera Fund, created in FY 2007, is a special revenue fund used to                  Revenues              FY09          FY10          FY11         Change
track the financial transactions associated with the City's speed camera program.        Speed Camera Citations     2,756,463    4,080,000     1,344,000      -67.1%
In October 2009, a new State of Maryland law took effect that changed the
                                                                                         Other / Money & Prop.        20,984        50,000         5,000      -90.0%
threshold speed limit from 11 miles per hour to 12 miles per hour, limits the use
of speed cameras in school zones to Monday through Friday from 6:00 am to                Subtotal                   2,777,447    4,130,000     1,349,000      -67.3%
8:00 pm, and restricts the annual amount of program revenue the City can retain          Appr. Fund Balance                  -             -             -       N/A
to 10 percent of the City's total revenues. Based on current estimates, this new         Total                      2,777,447    4,130,000     1,349,000      -67.3%
law decreased the total number of citations the City issues each month from
approximately 4,900 to 2,800, or approximately 43 percent. This decrease
impacts program revenues for FY 2011, and will dramatically impact the future of          Speed Camera Fund         Actual       Adopted       Adopted         %
                                                                                            Expenditures            FY09          FY10          FY11         Change
the City's program and Speed Camera funded CIP projects.
                                                                                           Salaries                  256,325       333,400       287,500      -13.8%
Under the current assumptions, the FY 2011 Speed Camera Fund will support                  Benefits                   75,094        78,000        91,570       17.4%
5.5 positions (a decrease of 1.5 FTEs), the operating costs of the program, as             Overtime                   12,111        17,400        16,920       -2.8%
well as several CIP projects which focus on pedestrian and traffic safety in FY
                                                                                         Personnel Subtotal          343,530       428,800       395,990       -7.7%
2011. Although several CIP projects are funded with Speed Camera in FY 2011,
the majority of Speed Camera funding was removed from future years. The                    Contractual Services      959,476     1,705,500       574,840      -66.3%
following CIP projects will be impacted by this significant decrease in revenues:          Commodities                22,470        13,015        11,720      -10.0%
Accessible Pedestrian Signals, Illuminated Street Signs, Pedestrian Safety,              Operating Subtotal          981,946     1,718,515       586,560      -65.9%
Sidewalks, Street Lighting Improvements, and Traffic Controls. Some of these             Other / Capital              61,549               -             -       N/A
projects still contain some funding from the Speed Camera Fund in FY 2011
                                                                                         Administrative Charge               -             -     222,320         N/A
and/or the Capital Projects Fund in FY 2011 through future years.
                                                                                         Subtotal                   1,387,025    2,147,315     1,204,870      -43.9%
In the last quarter of FY 2010, the Rockville City Police Department started             Addition to Fund Balance            -   1,982,685       144,130      -92.7%
adding "portable camera units" (PCU's) to the City's speed camera program.               Total                      1,387,025    4,130,000     1,349,000      -67.3%
PCU's contain all the technology and the flash unit in one box that can be
transported easily from one location to the next. These units do not require an
employee to operate, and they can be deployed to locations where the fixed                Speed Camera Fund         Actual       Adopted       Adopted         %
poles and the speed van are limited. The number of citations issued due to the              by Department           FY09          FY10          FY11         Change
new PCU's will equal approximately 1,400 of the 2,800 estimated per month.               Police                     1,243,436    2,045,800       964,390      -52.9%
                                                                                         Public Works                 64,552        66,215        10,060      -84.8%
                  Speed Camera Fund Expenditures (in millions)                           Recreation and Parks          8,792               -             -       N/A
  $3.0
                                                                                         Non-Departmental             70,245        35,300       230,420      552.7%
                FY10 Adopted
                                                         $1.72




  $2.5
                                                                                         Total                      1,387,025    2,147,315     1,204,870      -43.9%
  $2.0          FY11 Adopted
                                                                 $0.81




  $1.5
                     $0.43


                               $0.40




  $1.0
  $0.5
  $0.0
                      Personnel                           Operating

                                                                                3 - 21
                                    Governmental Funds - Debt Service Fund
Debt Service Fund                                                                          Long-Term Debt Summary
The Debt Service Fund is used to account for the accumulation of resources for,            The following is a list of the notes / bonds that are included in the City's long-term
and the payment of, general long-term debt principal, interest and related costs.          debt. In addition to this list, the City will issue approximately $13 million in bonds
The fund includes expenditures for the payment of principal and interest due and           during FY 2011. This bond issue will fund the Police Station, the Gude Drive
service charges on debt, other than that supported by enterprise fund revenue.             Maintenance Facility, and the Senior Center CIP projects.
Applicable charts within the budget document present the Debt Service Fund
                                                                                                                                         Outstanding    Interest Rate    Final
separately after a subtotal has been reached. This is due to the fact that the Debt            General Long-Term Debt        Year
                                                                                                                                          Principal        Range        Maturity
Service Fund represents the budgeting of transfers from other funds so that there
is essentially a double-budgeting effect when the Debt Service Fund records the            General Improvements              1998             470,000   3.50 - 4.30%     2013
same expenditure.                                                                          General Improvements              2002           1,477,979   4.00 - 4.65%     2021
      Debt Service              Actual        Adopted        Adopted         %             General Improvements              2003           6,570,039   2.00 - 3.85%     2023
     Fund Revenues              FY09           FY10           FY11         Change          General Improv. Refunding         2003             809,286   2.00 - 3.00%     2013
  Interest Earnings              141,463        132,000          70,000     -47.0%         General Improvements              2004           7,980,000   4.00 - 5.00%     2029
  Assessments                    335,102        230,000        130,000      -43.5%         Loan Payable                      2005             178,467      2.00%         2012
  Trans. from General Fund      4,099,629      4,000,000      5,100,000      27.5%         General Improvements              2005          10,405,000   3.50 - 6.00%     2025
  Other                          384,300                -              -       N/A         General Improvements              2007           8,840,000   4.00 - 4.25%     2027
  Subtotal                      4,960,493      4,362,000      5,300,000      21.5%                     Total                               36,730,771
  Approp. Fund Balance                   -      736,008                -   -100.0%
  Total                         4,960,493      5,098,008      5,300,000       4.0%                                     General Fund Long-Term Debt Detail
                                                                                                                           Principal       Interest         Total
    Debt Service Fund           Actual        Adopted        Adopted         %                                 2011          3,007,298      1,451,286      4,458,584
      Expenditures              FY09           FY10           FY11         Change                              2012          2,982,120      1,345,920      4,328,040
  Principal                     3,467,152      3,464,031      3,332,298      -3.8%                             2013          2,742,536      1,239,826      3,982,362
  Interest                      1,696,785      1,568,977      1,743,786      11.1%                             2014          2,425,061      1,136,055      3,561,116
  Other Charges                     4,041         65,000         65,000       0.0%                             2015          2,425,061      1,043,706      3,468,767
  Subtotal                      5,167,978      5,098,008      5,141,084       0.8%                             2016          2,425,061        953,354      3,378,415
  Addition to Fund Balance               -              -      158,916         N/A                             2017          2,425,061        856,311      3,281,372
  Total                         5,167,978      5,098,008      5,300,000       4.0%                             2018          2,425,061        758,222      3,183,283
                                                                                                               2019          2,425,061        660,729      3,085,790
    Debt Service Fund           Actual        Adopted        Adopted         %                                 2020          2,425,061        562,662      2,987,723
     by Department              FY09           FY10           FY11         Change                              2021          2,425,140        463,455      2,888,595
  Non-Departmental              5,167,978      5,098,008      5,141,084       0.8%                             2022          2,286,347        363,280      2,649,627
  Total                         5,167,978      5,098,008      5,141,084       0.8%                             2023          2,281,903        268,875      2,550,778
                                                                                                               2024          1,780,000        172,525      1,952,525
                                                                                                               2025          1,210,000         94,113      1,304,113
                                                                                                               2026           520,000          44,200        564,200
                                                                                                               2027           520,000          22,100        542,100
                                                                                                               Total        36,730,771     11,436,619     48,167,390
                                                                                      3 - 22
                                   Enterprise Funds - Debt Service Schedules
             Enterprise Funds Long-Term Debt *                               Water Fund Long-Term Debt Detail              Sewer Fund Long-Term Debt Detail
                          Outstanding     Interest Rate    Final      Year      Principal     Interest     Total       Year    Principal    Interest     Total
                  Year
                           Principal         Range        Maturity    2011        1,671,866     755,168    2,427,034   2011     1,183,565    649,780     1,833,345
General Improv. 1999          1,476,098      3.21%         2019       2012        1,677,027     702,997    2,380,024   2012     1,176,752    606,761     1,783,513
General Improv. 2000          1,175,569      3.64%         2020       2013        1,652,561     650,638    2,303,199   2013     1,142,687    563,496     1,706,183
General Improv. 2002          2,421,658      1.90%         2023       2014        1,634,834     597,198    2,232,032   2014     1,110,135    519,209     1,629,344
General Improv. 2002          1,877,021   4.00 - 4.65%     2021       2015        1,642,289     543,406    2,185,695   2015     1,105,136    475,688     1,580,824
General Improv. 2003          2,134,961   2.00 - 3.88%     2023       2016        1,660,117     490,302    2,150,419   2016     1,105,136    433,594     1,538,730
General Improv. 2003            330,714   2.00 - 3.00%     2013       2017        1,673,332     423,239    2,096,571   2017     1,105,136    388,356     1,493,492
General Improv. 2004          6,155,000   4.00 - 5.00%     2029       2018        1,437,863     351,531    1,789,394   2018     1,100,135    342,841     1,442,976
General Improv. 2005          1,089,947      0.00%         2025       2019        1,170,964     299,628    1,470,592   2019     1,100,136    298,055     1,398,191
General Improv. 2005         36,685,000   3.50 - 6.00%     2036       2020         993,966      251,682    1,245,648   2020     1,100,135    253,044     1,353,179
General Improv. 2007          8,850,000   4.00 - 4.25%     2027       2021         860,350      212,462    1,072,812   2021     1,100,370    207,673     1,308,043
General Improv. 2008         11,490,000   3.00 - 4.50%     2028       2022         864,157      185,110    1,049,267   2022       924,518    162,063     1,086,581
Loan Payable      2010          998,100      1.00%         2031       2023         863,058      157,741    1,020,799   2023       923,478    124,417     1,047,895
  Total                      74,684,068                               2024         724,060      119,213     843,273    2024       785,000      86,301     871,301

* The City anticipates that all amounts required for payment on       2025         655,000       91,594     746,594    2025       650,000      52,737     702,737
enterprise fund debt will be provided from the respective fund's      2026         480,000       63,375     543,375    2026       305,000      25,924     330,924
revenues, which are secured by the full faith and credit and taxing   2027         480,000       42,375     522,375    2027       305,000      12,962     317,962
power of the City.
                                                                      2028         475,000       21,375     496,375    Total   16,222,319   5,202,901   21,425,220
                                                                      Total      20,616,444   5,959,034   26,575,478




                                                                                    3 - 23
                              Enterprise Funds - Debt Service Schedules
       Parking Fund Long-Term Debt Detail                Refuse Fund Long-Term Debt Detail                        SWM Fund Long-Term Debt Detail
Year       Principal    Interest      Total       Year       Principal         Interest       Total       Year       Principal    Interest     Total
2011          735,000    1,387,511    2,122,511   2011          375,000             101,700    476,700    2011           72,663        3,600        76,263
2012          760,000    1,361,061    2,121,061   2012          375,000              86,800    461,800    2012          117,992       10,364       128,356
2013          785,000    1,333,711    2,118,711   2013          375,000              71,900    446,900    2013          118,445        9,528       127,973
2014          820,000    1,302,312    2,122,312   2014          375,000              56,900    431,900    2014          118,903        9,070       127,973
2015          850,000    1,269,512    2,119,512   2015          365,000              41,900    406,900    2015          119,365        8,607       127,972
2016          885,000    1,238,699    2,123,699   2016          345,000              27,400    372,400    2016          119,832        8,140       127,972
2017          920,000    1,201,086    2,121,086   2017          340,000              13,600    353,600    2017          120,304        7,671       127,975
2018          960,000    1,161,894    2,121,894   Total        2,550,000            400,200   2,950,200   2018          120,780        7,192       127,972
2019        1,000,000    1,122,714    2,122,714                                                           2019          121,262        6,711       127,973
2020        1,040,000    1,081,894    2,121,894   RedGate Golf Fund Long-Term Debt Detail                 2020          121,748        6,225       127,973
2021        1,080,000    1,039,244    2,119,244   Year       Principal         Interest       Total       2021          122,239        5,734       127,973
2022        1,125,000      994,669    2,119,669   2011           24,803              10,869     35,672    2022          122,734        5,239       127,973
2023        1,175,000      948,059    2,123,059   2012           24,803              10,162     34,965    2023          123,237        4,738       127,975
2024        1,220,000      898,609    2,118,609   2013           24,804               9,418     34,222    2024          123,743        4,232       127,975
2025        1,275,000      846,053    2,121,053   2014           24,803               8,674     33,477    2025          124,253        3,721       127,974
2026        1,330,000      791,140    2,121,140   2015           24,803               7,930     32,733    2026           52,104        3,205        55,309
2027        1,390,000      733,040    2,123,040   2016           24,804               7,156     31,960    2027           52,625        2,684        55,309
2028        1,450,000      672,300    2,122,300   2017           24,804               6,349     31,153    2028           53,153        2,158        55,311
2029        1,515,000      608,350    2,123,350   2018           24,803               5,505     30,308    2029           53,683        1,627        55,310
2030        1,580,000      541,525    2,121,525   2019           24,803               4,637     29,440    2030           54,220        1,090        55,310
2031        1,645,000      474,375    2,119,375   2020           24,803               3,744     28,547    2031           54,762          548        55,310
2032        1,715,000      404,463    2,119,463   2021           24,804               2,827     27,631    Total       2,088,047     112,085    2,200,132
2033        1,790,000      331,575    2,121,575   2022           24,803               1,896     26,699
2034        1,865,000      255,500    2,120,500   2023           24,618                954      25,572
2035        1,945,000      173,906    2,118,906   Total         322,258              80,121    402,379
2036        2,030,000       88,813    2,118,813
Total      32,885,000   22,262,015   55,147,015




                                                                           3 - 24
                          Capital Project and Enterprise Funds - Debt Ratios
The debt ratios for the Capital Projects Fund and the Enterprise funds assist the                                                 SEWER FUND
City in monitoring the overall financial health of each fund. Neither Maryland State                                FY 2011        FY 2012 FY 2013             FY 2014       FY 2015
law nor the City Charter mandates a limit on municipal debt. In the Capital Projects      Gross Revenue              7,824,000     9,049,000     9,586,000     10,278,100    10,823,600
Fund, the City strives to 1) maintain its net tax-supported debt at a level not to
                                                                                          Less: Operating Exp.       5,795,510     6,204,695     6,658,456      7,166,790     7,730,812
exceed 1.0 percent of the assessed valuation of taxable property within the City, 2)
ensure that its net tax-supported debt per capita does not exceed $700, 3) ensure         Net Available Revenue      2,028,490     2,844,305     2,927,544      3,111,310     3,092,788
that its net tax-supported debt per capita as a percentage of Federal adjusted            Total Debt2                1,833,345     2,289,863     2,200,541      4,117,254     4,009,242
gross income does not exceed 2.5 percent, and 4) maintain its annual net tax-             Coverage (1.2 target)           1.11           1.24          1.33          0.76          0.77
supported debt service costs at a level less than 15 percent of the combined
expenditure budgets for the General, Special Revenue, and Debt Service Funds.
                                                                                                                                  REFUSE FUND
For the Enterprise Funds, the City strives to set enterprise fund rates at levels                                   FY 2011        FY 2012  FY 2013            FY 2014       FY 2015
needed to fully cover debt service requirements as well as operations,                    Gross Revenue              5,553,550     5,786,130     6,048,666      6,270,962     6,502,830
maintenance, administration and capital improvement costs. Debt service                   Less: Operating Exp.       5,281,590     5,437,646     5,610,149      5,808,468     6,028,493
coverage ratios are calculated annually for all of the City’s Enterprise Funds. A         Net Available Revenue        271,960       348,484       438,517       462,494       474,337
minimum of a 1.2 coverage ratio should be maintained for each of the Enterprise           Total Debt2                  476,700       461,800       446,900       431,900       406,900
Funds. For more information please see page 2-10, Debt Management Policies.
                                                                                          Coverage (1.2 target)           0.57           0.75          0.98          1.07          1.17


                            CAPITAL PROJECTS FUND1                                                                STORMWATER MANAGEMENT FUND
                         FY 2011   FY 2012 FY 2013             FY 2014      FY 2015                                FY 2011 FY 2012 FY 2013 FY 2014                           FY 2015
Debt per Assessed                                                                         Gross Revenue              2,111,500     2,705,100     3,486,500      4,424,600     4,539,500
                             0.63%        0.59%        0.61%        0.57%        0.53%
Value (1.0% target)                                                                       Less: Operating Exp.       2,972,050     3,117,346     3,278,712      3,463,131     3,668,172
Debt per Capita                                                                           Net Available Revenue       (860,550)     (412,246)      207,788       961,469       871,328
                           $1,223       $1,138       $1,160       $1,073         $986
($700 target)                                                                             Total Debt2                   76,263       128,356       743,478       728,900       714,322
Dept per Capita as a %                                                                    Coverage (1.2 target)         (11.28)         (3.21)         0.28          1.32          1.22
of per Capita Income         2.60%        2.30%        2.30%        2.00%        1.80%
(2.5% target)
                                                                                                                                   GOLF FUND
Debt Service as % of                                                                                                FY 2011        FY 2012  FY 2013            FY 2014       FY 2015
Operating Budget           11.20%        11.70%       10.90%       10.90%       10.50%    Gross Revenue              1,017,710     1,068,456     1,100,426      1,133,355     1,167,272
(15.0% target)                                                                            Less: Operating Exp.       1,580,700     1,796,370     1,851,149      1,913,965     1,983,160
                                                                                          Net Available Revenue       (562,990)     (727,914)     (750,723)      (780,610)     (815,888)
                                                                                                       2
                                 WATER FUND                                               Total Debt                    35,672        34,965        34,222        33,477        32,733
                         FY 2011  FY 2012 FY 2013              FY 2014      FY 2015       Coverage (1.2 target)         (15.78)        (20.82)       (21.94)       (23.32)       (24.93)
Gross Revenue            9,149,050   11,405,268   12,191,258   13,078,462   13,914,568    1. The Capital Projects Fund ratios include debt issued for the Town Center Parking Garages.
Less: Operating Exp.     6,498,140    6,871,742    7,285,786    7,753,801    8,272,945    2. Includes principal and interest from current and planned debt.
Net Available Revenue    2,650,910    4,533,526    4,905,472    5,324,661    5,641,623
Total Debt2              2,427,034    2,811,419    2,724,377    3,904,583    3,729,304
Coverage (1.2 target)         1.09         1.61         1.80         1.36         1.51


                                                                                      3 - 25
                   Statement of Projected Unreserved Equity in City Funds
This schedule depicts the anticipated beginning and ending unreserved fund
                                                                                                                     Proj. Fund                                          Proj. Fund
balance (or, in the case of an enterprise fund, working capital as defined as                                                         Plus Proj.       Less Proj.
                                                                                                                     Balance /                                           Balance /
current assets less current liabilities) for each of the City’s funds. Unreserved fund              Fund                                FY11             FY11
                                                                                                                      Working                                             Working
balance is the accumulated total of all prior years’ actual revenues in excess of                                                     Revenue         Expenditure
                                                                                                                   Capital 6/30/10                                     Capital 6/30/11
expenditures, commonly referred to as “surplus.” These amounts are not invested
in capital assets nor have they been committed or “reserved” for encumbrances,                General                 11,862,205       62,102,668        63,122,293        10,842,580
self-insurance, or other purposes.                                                            Water                     2,339,919       9,149,050          9,184,310        2,304,659

It is important to maintain a fund balance to ensure that City operations are not             Sewer                      (463,836)      7,824,000          8,175,290          (815,126)
negatively impacted by large, unexpected increases in expenditures or reductions              Refuse                    2,958,230       5,553,550          5,873,390        2,638,390
in revenues. For the General Fund, the City's Financial Management Policy is to               Parking                   3,202,026       3,262,000          4,418,715        2,045,311
maintain an unreserved fund balance at a level not less than 15 percent of annual             SWM                       4,899,187       2,111,500          3,250,650        3,760,037
General Fund revenue. The purpose of this unreserved balance is to alleviate
                                                                                              RedGate Golf             (1,691,655)      1,017,710          1,691,700        (2,365,645)
significant unanticipated budget shortfalls and to ensure the orderly provisions of
services to residents. This is the minimum level necessary to maintain the City’s             Special Act. *            4,994,075         727,730          1,024,240        4,697,565
credit worthiness and maintain adequate cash flows. According to the City's                   CDBG *                             -        614,348            614,348                  -
Financial Management Policies, use of funds below the 15 percent required level               Town Center * **           (148,578)        930,000            826,685           (45,263)
must be approved by specific action of the Mayor and Council.                                 Speed Camera * ***        4,173,386       1,349,000          1,204,870        4,317,516

Overall, the General Fund and the enterprise funds listed here remain above their             Debt Service              2,278,780       5,300,000          5,141,084        2,437,696
reserve requirements with the exception of the Sewer Fund and the RedGate Golf              Total                      34,403,739      99,941,556       104,527,575      29,817,720
Fund. The Sewer Fund's working capital balance is below the required reserve              * These funds are designated as special revenue funds. Special revenue funds are used to
level due to higher than anticipated payments to the Blue Plains Advanced                 account for the proceeds of specific revenue sources that are restricted by legal and
Wastewater Treatment Plant during FY 2009 and FY 2010. This negative working              regulatory provisions to finance specific activities. The City does not have a policy about
capital balance will be addressed through planned rate adjustments in FY 2011             maintaining a balance in these funds.
and future years. The RedGate Golf Fund's working capital is also below the               ** The Town Center Fund does not have a reserve policy, however it is the City's practice to
required reserve level due to annual financial losses over several years.                 maintain a positive fund balance so that taxpayer funds do not support private maintenance
Recognizing that the financial situation of the Fund is not improving, the Mayor          costs. The current negative balance will be addressed through future tax rate increases in
and Council directed staff to research alternative management options available to        the Town Square Commercial District and the Town Square Street and Area Lighting
RedGate. Pending completion of that research and further direction by the Mayor           District.
and Council, FY 2011 will continue with the business plan, which allows for the           *** For the Speed Camera Fund, there is currently $3.9 million appropriated in the CIP
administrative charge to RedGate be reduced by half.                                      budget for projects related to pedestrian and traffic safety. This $3.9 million is part of the
                                                                                          projected fund balance.




                                                                                     3 - 26
                                                               Five-Year Forecast
Overview
The purpose of the Five-Year Forecast is to facilitate the City in establishing            The Forecast assumes an average annual increase of approximately 1.6% in the
priorities and allocating resources appropriately. The Forecast is a tool that             population of Rockville from FY 2010 to FY 2015. This estimate is consistent with
assists the City in focusing its efforts on long-term initiatives, including               the latest projections from the Department of Community Planning and
necessary funding for infrastructure, maintenance, and                                     Development Services.
capital needs. If surpluses or deficits are predicted in the
Forecast, management actions should be taken early on        The Forecast is
in order to maintain the overall financial health of all                                                           Population for the City of Rockville, Maryland
                                                                 a tool that
funds.                                                                                                                          FY 2010 - FY 2015 *
                                                             assists the City                  72,500
                                                              in focusing its
The Forecast presents an overview of the revenues,           efforts on long-




                                                                                                                                                                                            67,341
expenditures, and changes in financial position for the                                        70,000
                                                             term initiatives,




                                                                                                                                                                             66,019
City’s General Fund, six enterprise funds, and Speed             including
Camera Fund. For the City's General Fund and Speed                                             67,500




                                                                                                                                                             64,660
                                                                 necessary




                                                                                                                                             63,984
Camera Fund, financial position is defined as fund              funding for




                                                                                                                              62,908
balance, and for the enterprise funds it is defined as




                                                                                                              62,476
                                                              infrastructure,                  65,000
working capital, which is current assets less current
                                                               maintenance,
liabilities. Though these funds use a different basis of
                                                                and capital                    62,500
accounting, they represent similar concepts; i.e.
                                                                   needs.
resources available at the beginning of the year to fund
operations, debt service, and capital improvements.                                            60,000
                                                                                                          FY 2010         FY 2011        FY 2012         FY 2013         FY 2014        FY 2015
In addition to forecasting out to FY 2015, we included four years of history along
with the current budget in this section. In terms of budgeting and long-term                   * Source: City of Rockville, Department of Community Planning and
financial planning, this section is essential for determining and establishing the               Development Services, February 2010.
overall spending level of the City. In short, understanding past revenue and
expenditure trends, and forecasting future revenue and expenditure trends, are
key in the overall financial management of the government.                                        The Five-Year Forecast section contains the following information:
                                                                                                  historic and projected revenues and expenditures, actual and
The revenue and expenditure figures presented throughout the Forecast are                         projected fund balance or working capital, and assumptions for
estimates that will change when new information becomes available. Large                          major revenue and expenditure categories. Also available is a Total
fluctuations in estimated revenues and expenditures can be caused by                              Revenue and Expenditure Summary of all Funds, which can be
unanticipated changes in the economy, rate changes, demand changes, and/or                        found on the next page.
policy or programmatic decisions. This section is not intended to be used as a
proposed budget for future years because of the certainty of future adjustments.                    General Fund Revenue Assumptions................................. 4 - 3
                                                                                                    General Fund Expenditure Assumptions............................ 4 - 4
The Five-Year Forecast is based on assumptions regarding what will happen in                        General Fund Five-Year Forecast...................................... 4 - 5
the economy over the next few years, and on known revenue and expenditure                           Water Fund ......................................................................... 4 - 6
drivers. Due to current economic conditions and the uncertainty surrounding the                     Sewer Fund ........................................................................ 4 - 7
future of the City’s major revenue sources, this Forecast reflects conservative                     Refuse Fund ...................................................................... 4 - 8
projections of the City’s major revenue sources.                                                    Parking Fund ...................................................................... 4 - 9
                                                                                                    Stormwater Mgmt Fund ...................................................... 4 - 10
                                                                                                    RedGate Golf Fund ............................................................ 4 - 11
                                                                                                    Speed Camera Fund ......................................................... 4 - 12

                                                                                     4-1
                           Total Revenue and Expenditure Summary by Fund
                                      Actual        Actual         Actual         Actual           Modified       Adopted     Estimated     Estimated      Estimated     Estimated
       Revenues by Fund
                                      FY06          FY07           FY08           FY09              FY10           FY11         FY12          FY13           FY14          FY15
  General (110)                     56,109,943     60,155,929    61,362,753     62,837,728         59,744,024   62,102,668    65,225,068     68,093,807     70,281,733    71,414,694
  Water (210)                        4,094,445      5,399,636     5,280,165      5,801,418          7,597,800    9,149,050    11,405,268     12,191,258     13,078,462    13,914,568
  Sewer (220)                        5,649,186      6,406,730     6,022,976      6,275,621          6,659,000    7,824,000     9,049,000      9,586,000     10,278,100    10,823,600
  Refuse (230)                       4,902,570      5,182,941     5,555,482      5,602,058          5,475,800    5,553,550     5,786,130      6,048,666      6,270,962     6,502,830
  Parking (320)                      1,440,882      3,580,074     4,164,003      3,180,989          3,052,000    3,262,000     3,513,289      3,596,927      3,652,574     3,732,943
  Stormwater Mgmt (330)              1,755,167      1,176,508       888,277        776,314          1,827,000    2,111,500     2,705,100      3,486,500      4,424,600     4,539,500
  RedGate Golf Course (340)          1,083,059      1,262,148     1,335,655      1,169,150          1,019,173    1,017,710     1,068,456      1,100,426      1,133,355     1,167,272
  Speed Camera (380)                       -           81,991     4,061,034      2,777,447          1,322,390    1,349,000     1,381,300      1,420,900      1,385,300     1,368,100
Total Revenues / Sources *          75,035,252     83,245,957    88,670,346     88,420,725         86,697,187   92,369,478   100,133,610    105,524,484    110,505,087   113,463,506
Percent Increase                         10.6%          10.9%          6.5%          -0.3%              -1.9%         6.5%          8.4%           5.4%           4.7%          2.7%

                                      Actual        Actual         Actual         Actual           Modified       Adopted     Estimated     Estimated      Estimated     Estimated
     Expenditures by Fund
                                      FY06          FY07           FY08           FY09              FY10           FY11         FY12          FY13           FY14          FY15
  General (110)                     54,017,217      61,439,495     61,978,081     64,284,016  61,487,195   63,122,293        65,158,110      67,895,212     70,875,040    74,258,882
  Water (210)                        5,640,322       5,747,544      6,183,215      6,965,004   7,794,307     9,184,310         9,570,384     10,011,417     11,064,308    11,590,464
  Sewer (220)                        5,376,974       5,443,124      5,979,682      6,016,986   7,013,165     8,175,290         8,556,306      8,954,810     10,356,859    10,817,868
  Refuse (230)                       4,732,291       4,675,342      4,852,917      5,129,830   5,327,728     5,873,390         6,015,927      6,174,925      6,360,005     6,566,813
  Parking (320)                        427,243      10,437,380      3,836,515      3,398,183   3,696,349     4,418,715         4,432,013      4,446,911      4,462,907     4,480,748
  Stormwater Mgmt (330)              2,093,436       2,673,487      1,185,276      1,871,840   2,758,759     3,250,650         3,416,460      3,882,983      4,067,525     4,273,443
  RedGate Golf Course (340)          1,192,750       1,292,306      1,382,071      1,508,188   1,602,000     1,691,700         1,906,632      1,960,667      2,022,739     2,091,190
  Speed Camera (380)                        -          107,879      1,498,747      1,387,025   1,075,824     1,204,870         2,556,223      2,577,736      2,602,984     1,299,088
Total Operating Exp. *              73,480,233      91,816,557     86,896,504     90,561,072  90,755,327   96,921,218       101,612,055     105,904,661    111,812,366   115,378,497
Percent Increase                          15.3%          25.0%             -5.4%        4.2%        0.2%            6.8%             4.8%          4.2%           5.6%          3.2%
  * Does not include revenues or expenditures from the Special Activities, CDBG, Town Center Management District, or Debt Service funds.


  The funds represented in the forecast include the                                                Total Revenue and Expenditure Budgets (in millions)
                                                                                              General, Enterprise, and Speed Camera Funds, FY 2006 - FY 2015
  City's General Fund, six enterprise funds, and the                    125
  Speed Camera Fund. The General Fund is the primary
  operating fund of the City and is used to account for
  the City's general or non-enterprise activities. Many of              110                            Revenues
  the City's administrative functions are supported                                                    Expenditures
  through this Fund. The enterprise funds are used to                    95
  account for operations financed and operated in a
  manner similar to private business enterprises where
  the cost of expenses, including both operations and                    80
  capital, are financed or recovered primarily through
  user charges. The Speed Camera Fund is a special                       65
  revenue fund that is used to account for the proceeds
  of speed camera citations. The revenues from this
  Fund are legally restricted to fund public safety                      50
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  activities.

                                                                                           4-2
                                        General Fund Revenue Assumptions
                                                                                                                  Tax Duplication (included in "From Other Gov'ts") - In FY 2011, Montgomery
 Several forecasting techniques or methods were used to project General                                           County elected to reduce the City's share of tax duplication by 15 percent due to
 Fund revenues. The rationale for using one method over another depends on                                        budget constraints. In addition to the potential for future reductions due to the
 the type of revenue. For revenue sources with a large amount of uncertainty,                                     County's projected budget deficits, the County is working on a new formula to
 like grants and miscellaneous revenues, staff assumed conservative                                               determine the amount of tax duplication that municipalities will receive in future
 estimates that most closely matched current trends. For revenue sources that                                     years (which may be less favorable to the City). Until more information becomes
 are linked to more specific events or quantities, such as property tax and                                       available, this projection assumes tax duplication revenue will remain flat at $1.9
 income tax, staff used trend analysis and forecasting based on current                                           million from FY 2012 through FY 2015.
 economic conditions to determine future collections. Regardless of the                                           Highway User (included in "From Other Gov'ts") - During FY 2010, Maryland's
 technique, staff's projections are conservative throughout the Forecast,                                         Board of Public Works voted to decrease the municipal share of highway user by
 ensuring prudent management of the City's General Fund.                                                          over 90 percent. The projection assumes this reduction will continue, with total
                                                                                                                  revenues equaling $113,000 each year for FY 2011 and FY 2012. For FY 2013
                                                                                                                  through FY 2015, the projection assumes $372,000. FY 2011 through FY 2013
Property Tax - This revenue source
                                                    Real Property AV (billions)                                   estimates were provided by the Maryland Municipal League.
makes up 56 percent of the FY 2011         $14.0
adopted General Fund budget. The                                                                                  Charges for Services - This revenue is from charges to users who individually
                                           $12.0                                                                  benefit from a particular service offered by the City. This revenue source is
total taxable assessed value ("AV")
from FY 2010 to FY 2011 is estimated       $10.0                                                                  estimated to grow by approximately 5 percent each year as a result of increases
to increase by only 1.4 percent. This       $8.0                                                                  in population, available programs, and in program fees to improve the City's
shows a major slowing in assessed                                                                                 overall cost recovery.
                                            $6.0
values compared to previous fiscal                                                                                Fines and Forfeitures - This revenue source is estimated to increase by 3
                                            $4.0
years (see graph). All properties in the                                                                          percent over the projection period. Revenues received from redlight camera
                                                '02
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City were reassessed in January 2009                                                                              infractions make up most of this category.
and January 2010, and many properties experienced significant decreases in                                        Use of Money and Property - Interest income, the largest revenue source in this
their overall assessed values since 2006 and 2007. This slowdown in assessed                                      category, is estimated to remain flat at approximately $30,000 for FY 2011.
values will likely continue, and is assumed in the FY 2012 through FY 2015                                        Starting in FY 2012, staff projects interest income will begin to increase to
projections. The FY 2012 through FY 2015 projections reflect relatively flat                                      approximately 1 percent of the estimated fund balance during the year for FY
assessments with only 3 percent increases in assessments estimated for FY                                         2012 and 3 percent for FY 2013 through FY 2015. Interest income relates directly
2013 and FY 2014, and with limited new properties added each fiscal year. The                                     to short-term fixed income rates.
projected revenues assume a rate of $0.292 for real property and $0.805 for                                       Other Revenues - A majority of the revenues in this category are from
personal property, and the continuation of the Homeowners' Tax Credit Program.
                                                                                                                  administrative charges to enterprise and special revenue funds for centrally
Licenses and Permits - Building permits, the largest revenue source in this                                       budgeted administrative or “overhead” costs. Each fund pays for its share of the
category, are not increasing due to low development activity. Building permits                                    costs through a transfer to the General Fund. The administrative charges
are estimated to remain flat throughout the projection period, while other                                        increased for FY 2011 per the updated Cost Allocation Plan, with 1 percent
revenues in this category are estimated to increase by 3 percent.                                                 increases each year for FY 2012 and FY 2013, and 1.25 percent increases in FY
                                                                                                                  2014 and FY 2015, based on the current Mayor and Council Financial
Income Tax (included in "From Other Gov'ts") - The recent economic downturn,
                                                                                                                  Management Policy.
resulting in higher unemployment and reductions in capital gains, has decreased
income tax revenues from the $10 million levels generated in FY 2008 and FY                                       Hotel Tax (included in "Other Revenues") - FY 2009 was the first year the City
2009, to approximately $9.3 million in FY 2010 and FY 2011. Starting in FY                                        charged the 2 percent tax (started in October 2008). The FY 2011 budget
2012, income tax is estimated to increase to $9.8 million, with modest 3 percent                                  includes revenues of $850,000 from ten hotels, and the projection assumes an
increases assumed each year from FY 2013 through FY 2015.                                                         increase of 4 percent each year from FY 2012 through FY 2015 due to new hotels
                                                                                                                  and an increase in the average hotel room rates.


                                                                                                            4-3
                                           General Fund Expenditure Assumptions
                                                                                                 Transfer to the CIP - The CIP program is mainly funded from four components:
  Similar to the General Fund revenues, several forecasting techniques or                        cash, debt, government grants, and developer contributions. The transfer from the
  methods were used to project General Fund expenditures. The rationale for                      General Fund is the cash or "pay-go" contribution. The pay-go contribution is
  using one method over another depends on the type of expenditure. For                          critical in controlling the City's overall debt and maintaining the City's credit rating.
  expenditures that fluctuate, like capital outlay, staff assumed conservative                   Historically, the City has transferred one-time savings (General Fund reserve in
  estimates that most closely matched current trends. For expenditures that                      excess of the 15 percent reserve requirement) in addition to the annual budgeted
  are linked to more specific activities or quantities, such as personnel and                    transfer in an effort to reduce borrowing (see graph below). The FY 2011 adopted
  debt service, staff used trend analysis or known schedules to determine                        budget includes a transfer of $3,141,000, FY 2012 includes a transfer of $3.0
  future expenditures.                                                                           million, FY 2013 will assume $3.5 million, and FY 2014 and FY 2015 will assume
Personnel - Includes salary, benefits, and overtime. Personnel is estimated to                   $4.0 million and $4.5 million respectively. The reduced transfer amounts reflect
increase by an average annual 5.4 percent over the projection period, mainly                     the recent and projected reductions in General Fund revenues.
due to an average annual increase of 15 percent in benefits. These increases
                                                                                                                                     Pay-go Transfer to CIP (millions)
assume General Fund staffing levels will remain relatively flat over the projection               $12.0
period.




                                                                                                                                         $8.5
                                                                                                  $10.0




                                                                                                                              $7.8
                                                                                                                     $10.3
Contractual Services and Commodities - There is an estimated increase of 1                         $8.0




                                                                                                            $6.1
percent for contractual services and 3 percent for commodities from FY 2011




                                                                                                                                                                                       $4.5
                                                                                                   $6.0




                                                                                                                                                                                $4.0
                                                                                                                                                                         $3.5
through FY 2015. These increases take into account the recent "belt tightening"




                                                                                                                                                                 $3.0
                                                                                                                                                          $3.1
                                                                                                                                                  $2.4
of the City's General Fund expenditures. In order to keep costs down given the                     $4.0

economic environment the following areas have been reduced or will remain flat:                    $2.0
employee travel and training, position reclassifications, contract services,                       $0.0
program supplies and equipment.




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Capital Outlay - This expenditure category usually fluctuates from year to year
since it is comprised of many one-time expenditures. Staff could not use historic                Transfer to Debt Service - This represents the annual transfer to the Debt
trends to determine future increases or decreases because of the fluctuation. To                 Service Fund to support the City's annual debt payments. The projected debt
be conservative, capital outlay is estimated to remain flat from FY 2011 through                 payments cover old and new General Fund debt, including $13 million that is
the end of the projection period.                                                                planned for FY 2011 for the Police Station, Gude Drive Maintenance Facility, and
                                                                                                 Senior Center, and $6.5 million that is planned for FY 2013 for asphalt and
Other / Transfers - This category is primarily comprised of the transfer to the                  concrete maintenance and repair.
Parking Fund, and Outside Agency and Caregiver grants. The transfer to the
Parking Fund is budgeted at $1,030,000 in FY 2011, and will increase to $1.2                                                          Debt Service Transfer (millions)
                                                                                                  $7.0
million in FY 2012 through FY 2015. Outside Agency and Caregiver grants are
expected to increase by 1 percent each year in FY 2012 and FY 2013, and 1.25                      $6.0




                                                                                                                   $5.7
percent each year in FY 2014 and FY 2015.                                                         $5.0    $5.4




                                                                                                                                                         $5.1



                                                                                                                                                                 $5.1



                                                                                                                                                                         $5.1



                                                                                                                                                                                $5.0



                                                                                                                                                                                       $5.0
                                                                                                                             $4.9
                                                                                                  $4.0




                                                                                                                                        $4.1
                                Parking Transfer (millions)




                                                                                                                                                $4.0
$2.0                                                                                              $3.0
                                                                                                  $2.0
                                                           $1.20



                                                                   $1.20



                                                                           $1.20



                                                                                   $1.20
                $1.17




$1.5
                                                   $1.03




                                                                                                  $1.0
                        $1.57



                                   $0.95



                                           $0.85




                                                                                                  $0.0
$1.0
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$0.5
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$0.0
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                                                                                           4-4
                                             General Fund Five-Year Forecast
        Revenues /                  Actual       Actual              Actual            Actual            Modified         Adopted         Estimated          Estimated        Estimated         Estimated
         Sources                    FY06         FY07                FY08              FY09               FY10             FY11             FY12               FY13             FY14              FY15
  Property Taxes                   28,513,927   31,192,975          32,205,812       34,526,050      34,748,056           34,762,000      36,533,612         37,780,640       39,065,078        39,304,700
  Licenses and Permits              1,778,686    2,114,909           1,797,039        1,606,198       1,535,342            1,660,000       1,685,800          1,712,374        1,739,745         1,767,938
  From Other Gov'ts                16,583,739   17,673,744          17,981,956       17,801,482      14,368,025           13,527,213      14,118,084         14,983,498       15,405,103        15,841,359
  Charges for Service               4,586,595    4,652,890           4,859,899        5,473,186       5,678,786            5,853,405       6,146,075          6,453,379        6,776,048         7,114,850
  Fines and Forfeitures               799,486      877,137             634,907          648,477         649,150              645,000         664,350            684,281          704,809           725,953
  Use of Money / Property           2,106,781    1,883,744           2,168,327          330,784         177,855              322,080         409,642            640,168          643,464           601,539
  Other Revenues                    1,740,729    1,760,530           1,714,813        2,451,549       2,586,810            5,332,970       5,667,505          5,839,468        5,947,487         6,058,354
Total Revenues / Sources           56,109,943   60,155,929          61,362,753       62,837,728      59,744,024           62,102,668      65,225,068         68,093,807       70,281,733        71,414,694
Percent Increase                     12.6%        7.2%                2.0%             2.4%            -4.9%                3.9%            5.0%               4.4%             3.2%              1.6%

                                    Actual       Actual              Actual            Actual            Modified         Adopted         Estimated          Estimated        Estimated         Estimated
       Expenditures
                                    FY06         FY07                FY08              FY09               FY10             FY11             FY12               FY13             FY14              FY15
  Personnel                        31,079,840   32,226,031          33,507,220       36,941,746      39,162,420           40,349,040      42,125,796         44,127,540       46,463,249        49,097,308
  Contract Services                 5,979,042    6,308,899           7,746,084        7,373,957       7,440,313            6,725,625       6,792,881          6,860,810        6,929,418         6,998,712
  Commodities                       3,777,052    4,153,091           4,457,595        4,517,281       5,469,139            4,992,238       5,142,005          5,296,265        5,455,153         5,618,808
  Capital Outlay                      620,675      540,260             749,700          644,462         721,312              480,620         480,620            480,620          480,620           480,620
  Other / Transfers                 1,070,210    2,247,590           2,780,090        2,173,247       2,316,011            2,333,770       2,516,808          2,529,976        2,546,600         2,563,433
  Subtotal                         42,526,819   45,475,871          49,240,689       51,650,692      55,109,195           54,881,293      57,058,110         59,295,212       61,875,040        64,758,882
  Transfer to CIP                   6,107,286   10,312,824           7,831,500        8,533,695       2,378,000            3,141,000       3,000,000          3,500,000        4,000,000         4,500,000
  Debt Service                      5,383,112    5,650,800           4,905,892        4,099,629       4,000,000            5,100,000       5,100,000          5,100,000        5,000,000         5,000,000
Total Operating Expenditures       54,017,217   61,439,495          61,978,081       64,284,016      61,487,195           63,122,293      65,158,110         67,895,212       70,875,040        74,258,882
Percent Increase                     16.0%        13.7%               0.9%             3.7%            -4.4%                2.7%            3.2%               4.2%             4.4%              4.8%

Fund Balance, Beginning            14,857,833   16,950,559          15,666,993       15,051,665      13,605,376           11,862,205      10,842,580         10,909,538       11,108,133        10,514,826
  Net Change                        2,092,726   (1,283,566)           (615,328)      (1,446,289)     (1,743,171)          (1,019,625)         66,958            198,595         (593,307)       (2,844,188)
Fund Balance, Ending               16,950,559   15,666,993          15,051,665       13,605,376      11,862,205           10,842,580      10,909,538         11,108,133       10,514,826         7,670,638
Projected Reserve Level                                                                                                     17.5%          16.7%              16.3%            15.0%              10.7%


 One of the City's financial management                        FY06 - FY15 Fund Balance (millions)                                               FY06 - FY15 Rev. and Exp. (millions)
 policies is to maintain a fund balance in        $20                                                                               $85
 the General Fund at or above 15% of                                                15% Reserve
                                                                                                                                    $80
 adopted annual revenue. For FY 2011,                                               Requirement
                                                  $15                                                                                                          Revenues
 the adopted General Fund budget utilizes                                                                                           $75
 $1,019,625 in excess of the 15% reserve                                                                                                                       Expenditures
                                                                                                                                    $70
 requirement.                                     $10
                                                                                                                                    $65
 Over the projection period, revenues are                                                                                           $60
                                                   $5
 estimated to increase by an average of
                                                                                                                                    $55
 3.7% per year and expenditures are
 estimated to increase by an average of            $0                                                                               $50
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 4.4% per year.

                                                                                            4-5
                                                    Water Fund Five-Year Forecast
        Revenues /                    Actual              Actual            Actual          Actual            Modified         Adopted      Estimated       Estimated       Estimated       Estimated
                             Note
         Sources                      FY06                FY07              FY08            FY09               FY10             FY11          FY12            FY13            FY14            FY15
  Utility Charges                     3,329,221           3,848,321         4,550,391       5,183,077         7,000,000        8,600,000     10,824,000      11,475,000     12,286,000      13,062,000
  Penalties                   A          27,639              34,334            47,626          48,477            50,000           50,000         50,000          50,000         50,000          50,000
  Connection Charges                    117,200             624,626            98,400          14,700            10,000           15,000         15,000          15,000         15,000          15,000
  Interest Income             B         138,615             213,862            62,960          43,931            10,000            5,800         32,600         162,100        231,600         284,900
  Transfers In / Other        C         481,770             678,493           520,788         511,233           527,800          478,250        483,668         489,158        495,862         502,668
Total Revenues / Sources              4,094,445           5,399,636         5,280,165       5,801,418         7,597,800        9,149,050     11,405,268      12,191,258     13,078,462      13,914,568
Percent Increase                           5.6%               31.9%             -2.2%            9.9%             31.0%            20.4%          24.7%            6.9%           7.3%            6.4%

                                      Actual              Actual            Actual          Actual            Modified         Adopted      Estimated       Estimated       Estimated       Estimated
         Expenses            Note
                                      FY06                FY07              FY08            FY09               FY10             FY11          FY12            FY13            FY14            FY15
  Personnel                   D       2,187,994           2,304,174         2,412,085       2,735,025         3,103,432        3,322,420      3,468,460       3,633,086      3,825,100       4,041,758
  Contract Services                     565,822             305,246           334,163         368,410           488,112          469,360        516,296         567,926        624,718         687,190
  Commodities                 E         785,392           1,013,630         1,221,560       1,325,683         1,431,184        1,614,550      1,776,005       1,953,606      2,148,966       2,363,863
  Capital Outlay                        338,415             226,892           182,585         149,031           214,179           91,700        100,870         110,957        122,053         134,258
  Admin. Charge               F         394,099             406,000           418,000         431,000           444,000        1,000,110      1,010,111       1,020,212      1,032,965       1,045,877
  Debt Service                G         356,621             353,805           394,485         744,147           808,400          980,170        907,342         844,766      1,335,599       1,243,865
  Other                       H       1,011,979           1,137,797         1,220,337       1,211,708         1,305,000        1,706,000      1,791,300       1,880,865      1,974,908       2,073,654
Total Operating Expenses              5,640,322           5,747,544         6,183,215       6,965,004         7,794,307        9,184,310      9,570,384      10,011,417     11,064,308      11,590,464
Percent Increase                          19.6%                1.9%              7.6%           12.6%             11.9%            17.8%           4.2%            4.6%          10.5%            4.8%

Working Capital, Beginning                                                                                    2,536,426        2,339,919      2,304,659       4,139,543       6,319,384      8,333,538
 Net Change                                                                                                    (196,507)         (35,260)     1,834,884       2,179,841       2,014,154      2,324,103
Working Capital, Ending               1,156,370           (240,476)        (1,838,775)      2,536,426         2,339,919        2,304,659      4,139,543       6,319,384       8,333,538     10,657,641

                                                                                                                                NOTES:
                                                                   FY06 - FY15 Working Capital (millions)                       A. Charges for services are estimated to increase by 25.0% for FY 2011,
 In FY 2008, the Department of              $20
                                                                                                                                24.5% for FY 2012, and between 5.0 and 5.2% from FY 2012 through FY
 Public Works presented two                 $15
                                                                                                                                2015. Both the tiered usage fee and the ready-to-serve fee (estimated to
 studies that evaluated the City's          $10                                                                                 increase by 3% each year) are included in the Utility Charges.
 overall water program related to              $5                                                                               B. Interest Income is approximately 1% of the estimated working capital
 the Water Treatment Plant and                                                                                                  balance during the year for FY 2012 and 3% for FY 2013 through FY
                                               $0
 the Water Distribution System. As                                                                                              2015.
                                            -$5                                                                                 C. Includes transfers in from the Sewer and Refuse funds, which
 a result of the studies, there are
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 significant operating and capital                                                                                              increased in FY 2011 per the updated Cost Allocation Plan, with 1%
                                                                                                                                increases each year for FY 2012 and FY 2013, and 1.25% increases in
 expenses in FY 2011 through                                     FY06 - FY15 Revenues and Expenses (millions)
                                            $20
                                                                                                                                FY 2014 and FY 2015.
 FY 2015. In order to support the                                                                                               D. Personnel is estimated to increase by an average annual 5.4% over
 increased expenses, water usage                                    Revenues
                                            $15                                                                                 the projection period, mainly due to increases in benefits.
 rates will increase over the                                       Expenses                                                    E. Operating, Commodity, and Capital Outlay expenses are estimated to
 five-year projection period.               $10                                                                                 increase by approximately 10% each year in order to address the
 Water rates are established over a                                                                                             concerns identified in the two water studies.
                                               $5
                                                                                                                                F. Refers to the transfer to the General Fund, which increased in FY 2011
 18-year period.
                                               $0
                                                                                                                                per the updated Cost Allocation Plan, with 1% increases each year for FY
                                                                                                                                2012 and FY 2013, and 1.25% increases in FY 2014 and FY 2015.
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                                                                                                                                G. Debt Service amounts represent interest payments based on current
                                                                                                                                and future debt schedules. Future debt equals $16.9 million.
                                                                                                 4-6                            H. Includes depreciation which is estimated to increase by 5% each year
                                                                                                                                due to the number of current Water Fund capital projects.
                                                 Sewer Fund Five-Year Forecast
        Revenues /                   Actual                Actual                      Actual               Actual            Modified                 Adopted      Estimated       Estimated       Estimated       Estimated
                             Note
         Sources                     FY06                  FY07                        FY08                 FY09               FY10                     FY11          FY12            FY13            FY14            FY15
  Utility Charges                    5,292,750            5,530,884                    5,562,962        5,888,428             6,580,000                7,755,000      8,982,000       9,519,000     10,203,000      10,749,600
  Penalties                   A         38,852               50,186                       62,938           55,768                50,000                   50,000         50,000          50,000         50,000          50,000
  Connection Charges                   137,550              617,731                      139,700           21,200                10,000                   15,000         15,000          15,000         15,000          15,000
  Interest Income             B        175,872              201,815                      250,557           49,566                 4,000                    2,000            -               -            8,100           7,000
  Transfers In / Other                   4,162                6,114                        6,819          260,659                15,000                    2,000          2,000           2,000          2,000           2,000
Total Revenues / Sources             5,649,186            6,406,730                    6,022,976        6,275,621             6,659,000                7,824,000      9,049,000       9,586,000     10,278,100      10,823,600
Percent Increase                          2.9%                13.4%                        -6.0%             4.2%                  6.1%                    17.5%          15.7%            5.9%           7.2%            5.3%

                                     Actual                Actual                      Actual               Actual            Modified                 Adopted      Estimated       Estimated       Estimated       Estimated
         Expenses            Note
                                     FY06                  FY07                        FY08                 FY09               FY10                     FY11          FY12            FY13            FY14            FY15
  Personnel                   C      1,051,680            1,153,589                    1,291,489        1,219,851             1,350,378                1,481,150      1,545,620       1,618,314      1,703,085       1,798,762
  Contract Services           D      2,270,390            2,326,920                    2,487,670        2,538,835             3,221,627                3,227,720      3,558,067       3,924,506      4,331,003       4,781,962
  Commodities                          102,656              111,645                      128,727          118,286               195,287                  195,590        201,458         207,501        213,726         220,138
                              E
  Capital Outlay                           -                    -                            -             18,877                48,673                   41,000         41,000          41,000         41,000          41,000
  Admin. Charge               F        532,258              227,000                      233,800          241,000               248,200                  541,650        547,067         552,537        559,444         566,437
  Debt Service                G        551,837              571,416                      718,638          734,352               693,800                  874,780        846,611         791,354      1,685,069       1,582,056
  Other                       H        868,153            1,052,554                    1,119,358        1,145,783             1,255,200                1,813,400      1,816,484       1,819,599      1,823,531       1,827,513
Total Operating Expenses             5,376,974            5,443,124                    5,979,682        6,016,986             7,013,165                8,175,290      8,556,306       8,954,810     10,356,859      10,817,868
Percent Increase                         21.4%                 1.2%                         9.9%             0.6%                 16.6%                    16.6%           4.7%            4.7%          15.7%            4.5%

Working Capital, Beginning                                                                                                     (109,671)                (463,836)      (815,126)       (322,432)        308,758         229,999
 Net Change                                                                                                                    (354,165)                (351,290)       492,694         631,190         (78,759)          5,732
Working Capital, Ending              4,919,378            2,939,900                    4,828,566            (109,671)          (463,836)                (815,126)      (322,432)        308,758         229,999         235,731

                                                                                                                                                        NOTES:
                                                                       FY06 - FY15 Working Capital (millions)                                           A. Charges for services are estimated to increase by 13.0% each year in
 Revenue projections for the               $10
                                                                                                                                                        FY 2011 and FY 2012, and 5.1% from FY 2012 through FY 2015. Both
 Sewer Fund are based on the                $8
                                                                                                                                                        the usage fee and the ready-to-serve fee (estimated to increase by 3%
 City's growth forecast regarding           $6
                                                                                                                                                        each year) are included in the Utility Charges.
 future development. The increase           $4
                                                                                                                                                        B. Interest Income is approximately 3% of the estimated working capital
 in Sewer revenues is consistent            $2
                                                                                                                                                        balance for FY 2014 and FY 2015.
                                            $0
 with the increase in Sewer                                                                                                                             C. Personnel is estimated to increase by an average annual 5.4% over
                                           -$2                                                                                                          the projection period, mainly due to increases in benefits.
 expenses, including an estimated
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 annual 11% increase in the City's                                                                                                                      D. Contractual Services includes the operating payment to Blue Plains,
                                                                                                                                                        which is estimated to increase by 11% each year. All other Contractual
 payment to the Blue Plains                                      FY06 - FY15 Revenues and Expenses (millions)
                                                                                                                                                        Services are estimated to increase by 1% each year.
 Wastewater Treatment Facility.            $15
                                                                                                                                                        E. Commodity expenses are estimated to increase by approximately 3%
 Sewer rates will increase by              $12                                                                                                          each year, while Capital Outlay remains flat.
 approximately 13.0% each year in             $9                                                                                                        F. Refers to the transfer to the General Fund, which increased in FY 2011
 FY 2011 and FY 2012, and 5.1%                $6
                                                                                                                                                        per the updated Cost Allocation Plan, with 1% increases each year for FY
                                                                                                                        Revenues                        2012 and FY 2013, and 1.25% increases in FY 2014 and FY 2015.
 from FY 2012 through FY 2015.
                                              $3                                                                        Expenses                        G. Debt Service amounts represent interest payments based on current
 Sewer rates are established over
                                              $0                                                                                                        and future debt schedules. Future debt equals $26.4 million.
 a five-year period.                                                                                                                                    H. Includes depreciation and a transfer to the Water Fund. For this
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                                                                                                                                                        analysis, depreciation is estimated to remain flat and the Water Fund
                                                                                                                                                        transfer increased in FY 2011 per the updated Cost Allocation Plan, with
                                                                                                               4-7                                      1% increases each year for FY 2012 and FY 2013, and 1.25% increases
                                                                                                                                                        in FY 2014 and FY 2015.
                                                Refuse Fund Five-Year Forecast
        Revenues /                    Actual                Actual                    Actual                  Actual              Modified                 Adopted      Estimated       Estimated       Estimated       Estimated
                             Note
         Sources                      FY06                  FY07                      FY08                    FY09                 FY10                     FY11          FY12            FY13            FY14            FY15
  Customer Charges                    4,783,401         5,067,895                    5,229,359                5,352,476           5,374,900                5,450,000      5,657,100       5,872,070       6,095,208       6,326,826
                              A
  Penalties                              42,643            58,890                       65,576                   64,578              60,000                   60,000         62,280          64,647          67,103          69,653
  Interest Income             B          18,101            24,772                      122,411                   36,194               2,500                    2,000         25,200          70,400          67,100          64,800
  Sales of Recyclables                      -               1,331                      105,110                  115,784               1,900                      350            350             350             350             350
  Transfers In / Other        C          58,425            30,053                       33,026                   33,026              36,500                   41,200         41,200          41,200          41,200          41,200
Total Revenues / Sources              4,902,570         5,182,941                    5,555,482                5,602,058           5,475,800                5,553,550      5,786,130       6,048,666       6,270,962       6,502,830
Percent Increase                           7.6%              5.7%                         7.2%                     0.8%               -2.3%                     1.4%           4.2%            4.5%            3.7%            3.7%

                                      Actual                Actual                    Actual                  Actual              Modified                 Adopted      Estimated       Estimated       Estimated       Estimated
         Expenses            Note
                                      FY06                  FY07                      FY08                    FY09                 FY10                     FY11          FY12            FY13            FY14            FY15
  Personnel                   D       2,504,411         2,439,465                    2,467,527                2,553,113           2,515,950                2,583,760      2,706,355       2,844,869       3,006,165       3,188,560
  Contract Services                   1,077,524         1,194,302                    1,294,331                1,223,325           1,558,257                1,396,240      1,410,202       1,424,304       1,438,547       1,452,933
                              E
  Commodities                           331,032           271,488                      288,875                  311,950             355,121                  324,120        333,844         343,859         354,175         364,800
  Capital Outlay                         20,956             4,725                          -                     51,885              11,000                      -              -               -               -               -
  Admin. Charge               F         416,729           429,000                      441,800                  456,000             469,700                  977,470        987,245         997,117       1,009,581       1,022,201
  Debt Service                G          23,545            18,034                      115,584                  130,708             116,600                  101,700         86,800          71,900          56,900          41,900
  Other                       H         358,094           318,328                      244,800                  402,849             301,100                  490,100        491,481         492,876         494,637         496,420
Total Operating Expenses              4,732,291         4,675,342                    4,852,917                5,129,830           5,327,728                5,873,390      6,015,927       6,174,925       6,360,005       6,566,813
Percent Increase                           2.3%             -1.2%                         3.8%                     5.7%                3.9%                    10.2%           2.4%            2.6%            3.0%            3.3%

Working Capital, Beginning                                                                                                        2,810,158                2,958,230      2,638,390       2,408,593       2,282,335       2,193,292
 Net Change                                                                                                                         148,072                 (319,840)      (229,797)       (126,258)        (89,043)        (63,984)
Working Capital, Ending                416,694               903,618                 4,075,514                2,810,158           2,958,230                2,638,390      2,408,593       2,282,335       2,193,292       2,129,308

                                                                                                                                                            NOTES:
                                                                        FY06 - FY15 Working Capital (millions)                                              A. The refuse rate per household per year will remain flat at $392.40
 The FY 2011 refuse budget is              $6
                                                                                                                                                            through FY 2011. After FY 2011, 3.8% rate increases are anticipated.
 based on a semi-automated once
                                                                                                                                                            B. Interest Income is approximately 1% of the estimated working capital
 per week recycling and refuse             $4
                                                                                                                                                            balance during the year for FY 2012 and 3% for FY 2013 through FY
 program. The refuse rate will                                                                                                                              2015.
 remain flat at $392.40 per year.          $2
                                                                                                                                                            C. Refers to the transfer from the General Fund to the Refuse Fund to
 The semi-automated once per                                                                                                                                support Rockville Housing Enterprises (RHE) refuse pick-ups.
                                           $0                                                                                                               D. Personnel is estimated to increase by an average annual 5.9% over
 week system provides reduced
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 operating expenses because less                                                                                                                            the projection period, mainly due to increases in benefits.
                                                                                                                                                            E. Contract Services and Commodity expenses are estimated to increase
 personnel, contractual services,                                 FY06 - FY15 Revenues and Expenses (millions)
                                           $10                                                                                                              each year by approximately 1% and 3% respectively.
 commodities, and vehicles and                                                                                                                              F. Refers to the transfer to the General Fund, which increased in FY 2011
 equipment are needed. Because                 $8                                                                                                           per the updated Cost Allocation Plan, with 1% increases each year for FY
 of these reduced operating                    $6                                                                                                           2012 and FY 2013, and 1.25% increases in FY 2014 and FY 2015.
 expenses, the rate has remained               $4
                                                                                                                                                            G. Debt Service amounts represent interest payments based on current
                                                                                                                           Revenues                         debt schedules. No additional debt is anticipated.
 the same since FY 2008. Refuse
                                               $2                                                                          Expenses                         H. Includes depreciation and a transfer to the Water Fund. For this
 rates are established over a five-
                                               $0                                                                                                           analysis, depreciation is estimated to remain flat and the Water Fund
 year period.
                                                                                                                                                            transfer was increased for FY 2011 per the updated Cost Allocation Plan,
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                                                                                                                                                            with 1% increases each year for FY 2012 and FY 2013, and 1.25%
                                                                                                                                                            increases in FY 2014 and FY 2015.
                                                                                                                  4-8
                                                Parking Fund Five-Year Forecast
        Revenues /                     Actual                    Actual                 Actual               Actual              Modified                 Adopted       Estimated     Estimated       Estimated      Estimated
                             Note
         Sources                       FY06                      FY07                   FY08                 FY09                 FY10                     FY11           FY12          FY13            FY14           FY15
  Real Property Tax           A              -                  90,000                    127,298          209,005                 140,388                  163,000        179,289        203,134        223,447         245,792
  From Other Government       B              -                 310,000                    310,000          310,000                 310,000                  295,000        295,000        295,000        295,000         295,000
  Parking Meters                         189,527               211,566                    485,636          982,403               1,213,612                1,110,000      1,143,300      1,177,599      1,212,927       1,249,315
                              C
  Parking Violations                     384,171               480,555                    776,800          685,934                 533,000                  660,000        679,800        700,194        721,200         742,836
  Interest Income             D          733,665               866,945                    251,440           41,093                   5,000                    4,000         15,900         21,000            -               -
  Transfers In / Other        E          133,519             1,621,008                  2,212,830          952,553                 850,000                1,030,000      1,200,000      1,200,000      1,200,000       1,200,000
Total Revenues / Sources               1,440,882             3,580,074                  4,164,003        3,180,989               3,052,000                3,262,000      3,513,289      3,596,927      3,652,574       3,732,943
Percent Increase                          -15.7%                148.5%                      16.3%           -23.6%                   -4.1%                     6.9%           7.7%           2.4%           1.5%            2.2%

                                       Actual                    Actual                 Actual               Actual              Modified                 Adopted       Estimated     Estimated       Estimated      Estimated
         Expenses            Note
                                       FY06                      FY07                   FY08                 FY09                 FY10                     FY11           FY12          FY13            FY14           FY15
  Personnel                   F         116,713               186,779                     265,963          349,161                 350,683                  357,265        373,814        392,490        414,255         438,840
  Contract Services                       2,512               133,969                     606,293          608,644                 887,975                  954,270        963,813        973,451        983,185         993,017
                              G
  Commodities                            16,908                27,550                     129,256          107,868                 246,991                  236,190        243,276        250,574        258,091         265,834
  Capital Outlay                            -                     -                           -                -                     3,500                      -              -              -              -               -
  Admin. Charge               H         (67,351)               80,000                      82,400           85,000                  87,600                  656,980        663,550        670,185        678,563         687,045
  Debt Service                I         347,149             1,499,601                   1,465,859        1,441,711               1,413,100                1,387,510      1,361,061      1,333,711      1,302,312       1,269,512
  Other                       J          11,312             8,509,481                   1,286,744          805,800                 706,500                  826,500        826,500        826,500        826,500         826,500
Total Operating Expenses                427,243            10,437,380                   3,836,515        3,398,183               3,696,349                4,418,715      4,432,013      4,446,911      4,462,907       4,480,748
Percent Increase                          10.1%              2,343.0%                      -63.2%           -11.4%                    8.8%                    19.5%           0.3%           0.3%           0.4%            0.4%

Working Capital, Beginning                                                                                                       3,846,375                 3,202,026     2,045,311      1,126,586         276,602       (533,730)
 Net Change                                                                                                                       (644,349)               (1,156,715)     (918,725)      (849,984)       (810,332)      (747,805)
Working Capital, Ending               17,555,678             5,121,279                  4,280,189        3,846,375               3,202,026                 2,045,311     1,126,586        276,602        (533,730)    (1,281,535)

                                                                                                                                                           NOTES:
                                                                              FY06 - FY15 Working Capital (millions)                                       A. The Parking District Tax rate for FY 2011 was adopted at $0.33 per
 The City began charging for                 $20
                                                                                                                                                           $100 of assessed valuation. For FY 2012 through FY 2015, the tax rate
 parking in mid-FY 2008. The                 $15                                                                                                           will increase by 10% each year. FY 2013 assumes an increase in
 current rate in the garages is              $10                                                                                                           property assessments of 3%.
 $1.00 per hour Monday through                  $5                                                                                                         B. Includes $115,000 PILOT payment and $180,000 in capital
 Friday, 7:00 am to 6:00 pm, a                                                                                                                             contributions from Montgomery County.
                                                $0
 $1.00 flat fee from Monday                                                                                                                                C. Revenues are projected to increase by 3% each year starting in FY
                                             -$5                                                                                                           2012 due to overall improvements in the economy.
 through Friday, 6:00 pm to 10:00
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 pm, and $1.00 flat fee for all day                                                                                                                        D. Interest Income is approximately 1% of the estimated working capital
                                                                                                                                                           balance during the year for FY 2012 and 3% for FY 2013.
 Saturdays. As the forecast                                         FY06 - FY15 Revenues and Expenses (millions)
                                             $12                                                                                                           E. Refers to the annual subsidy from the General Fund.
 indicates, there will not be                                                                                                                              F. Personnel is estimated to increase by an average annual 5.7% over
 sufficient Parking Fund revenues            $10                                                                       Revenues
                                                                                                                                                           the projection period, mainly due to increases in benefits.
 generated from parking operations              $8                                                                     Expenses
                                                                                                                                                           G. Contract Services and Commodity expenses are estimated to increase
 to service all estimated expenses.             $6                                                                                                         each year by approximately 1% and 3% respectively.
 As a result, the annual transfer               $4                                                                                                         H. Refers to the transfer to the General Fund, which increased in FY
 from the City’s General Fund will              $2                                                                                                         2011 per the updated Cost Allocation Plan, with 1% increases each year
                                                $0                                                                                                         for FY 2012 and FY 2013, and 1.25% increases in FY 2014 and FY 2015.
 continue through future years.
                                                                                                                                                           I. Debt Service amounts represent interest payments based on current
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                                                                                                                                                           debt schedules. No additional debt is anticipated.
                                                                                                                4-9                                        J. Includes depreciation which will remain flat.
                          Stormwater Management Fund Five-Year Forecast
        Revenues /                    Actual                  Actual              Actual             Actual              Modified                 Adopted       Estimated      Estimated       Estimated       Estimated
                             Note
         Sources                      FY06                    FY07                FY08               FY09                 FY10                     FY11           FY12           FY13            FY14            FY15
  Utility Fee                 A             -                       -                   -                 -              1,620,000                1,985,000      2,551,000       3,280,200       4,217,800      4,321,800
  SWM Permits                           319,446                 257,266             300,690            37,875               80,000                   40,000         40,000          40,000          40,000         40,000
                              B
  SWM Part. Fees                      1,037,984                 485,581             261,040           111,380              120,000                   80,000         80,000          80,000          80,000         80,000
  Interest Income             C         397,737                 433,661             326,547           627,058                7,000                    6,500         34,100          86,300          86,800         97,700
Total Revenues / Sources              1,755,167               1,176,508             888,277           776,314            1,827,000                2,111,500      2,705,100       3,486,500       4,424,600      4,539,500
Percent Increase                          37.3%                  -33.0%              -24.5%            -12.6%               135.3%                    15.6%          28.1%           28.9%           26.9%           2.6%

                                      Actual                  Actual              Actual             Actual              Modified                 Adopted       Estimated      Estimated       Estimated       Estimated
         Expenses            Note
                                      FY06                    FY07                FY08               FY09                 FY10                     FY11           FY12           FY13            FY14            FY15
  Personnel                   D         397,376                 378,654             506,775          1,197,202           1,646,149                1,760,380      1,838,954       1,927,470       2,030,760      2,147,236
  Contract Services                     309,416                 235,097             246,177            282,737             622,533                  482,780        531,058         584,164         642,580        706,838
                              E
  Commodities                             2,542                   3,486                 782             49,687              94,875                  123,950        136,345         149,980         164,977        181,475
  Capital Outlay                            -                       -                   -               22,108              16,602                      -              -               -               -              -
  Admin. Charge               F         141,160                 145,000             149,300            154,000             158,600                  604,940        610,989         617,099         624,813        632,623
  Debt Service                G             -                       -                   -                  -                   -                      3,600         10,364         301,083         286,047        271,007
  Other                       H       1,242,942               1,911,250             282,242            166,105             220,000                  275,000        288,750         303,188         318,347        334,264
Total Operating Expenses              2,093,436               2,673,487           1,185,276          1,871,840           2,758,759                3,250,650      3,416,460       3,882,983       4,067,525      4,273,443
Percent Increase                          19.0%                   27.7%              -55.7%              57.9%               47.4%                    17.8%           5.1%           13.7%            4.8%           5.1%

Working Capital, Beginning                                                                                               5,830,946                 4,899,187     3,760,037       3,048,677       2,652,194      3,009,269
 Net Change                                                                                                               (931,759)               (1,139,150)     (711,360)       (396,483)        357,075        266,057
Working Capital, Ending               9,474,271               8,102,590           7,360,683          5,830,946           4,899,187                 3,760,037     3,048,677       2,652,194       3,009,269      3,275,326

                                                                                                                                                   NOTES:
                                                                       FY06 - FY15 Working Capital (millions)                                      A. The FY 2011 adopted fee is $49.20 per ERU. The rate will increase by
 In FY 2008 the Mayor and Council           $12
                                                                                                                                                   approximately 27% each year from FY 2012 to FY 2014, and then by
 approved an ordinance to amend             $10
                                                                                                                                                   1.2% from FY 2014 to FY 2015.
 the City Code to include a new              $8
                                                                                                                                                   B. These revenues are directly related to new development. With
 Stormwater Management Utility               $6
                                                                                                                                                   development in the City slowing, these revenues are estimated to remain
 Fee. For FY 2011 the utility fee            $4
                                                                                                                                                   flat throughout the projection period.
                                             $2
 will increase to $49.20, up from                                                                                                                  C. Interest Income is approximately 1% of the estimated working capital
                                             $0                                                                                                    balance during the year for FY 2012 and 3% for FY 2013 through FY
 $40.00 in FY 2010. Each
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 residential property will pay                                                                                                                     2015.
                                                                                                                                                   D. Personnel is estimated to increase by an average annual 5.5% over
 $49.20 or one equivalent                                        FY06 - FY15 Revenues and Expenses (millions)
                                                                                                                                                   the projection period, mainly due to increases in benefits.
 residential unit (ERU) per year,           $6
                                                                                                                                                   E. Contract Services and Commodity expenses are estimated to increase
 and each commercial property will          $5                         Revenues
                                                                                                                                                   by approximately 10% each year in order to fully implement the new
 pay $49.20 multiplied by the               $4                         Expenses                                                                    stormwater management program.
 number of ERUs measured on                 $3                                                                                                     F. Refers to the transfer to the General Fund, which increased in FY 2011
 their property. Stormwater utility         $2                                                                                                     per the updated Cost Allocation Plan, with 1% increases each year for FY
                                            $1                                                                                                     2012 and FY 2013, and 1.25% increases in FY 2014 and FY 2015.
 rates are established over a ten-
                                            $0                                                                                                     G. Debt Service amounts represent interest payments based on current
 year period.                                                                                                                                      and future debt schedules. Future debt equals $6.5 million.
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                                                                                                                                                   H. Includes depreciation which is estimated to increase by 5% each year
                                                                                                                                                   due to the number of current Stormwater Management Fund capital
                                                                                                                                                   projects.
                                                                                                        4 - 10
                                       RedGate Golf Fund Five-Year Forecast
        Revenues /                     Actual           Actual            Actual               Actual            Modified         Adopted       Estimated      Estimated       Estimated       Estimated
                             Note
         Sources                       FY06             FY07              FY08                 FY09               FY10             FY11           FY12           FY13            FY14            FY15
  Golf Course Fees                       846,338          869,521           887,553              827,324           779,576          779,580        818,559         843,116         868,409        894,462
  Cart Rentals                           217,988          252,324           265,553              230,766           219,832          219,830        230,822         237,746         244,879        252,225
                              A
  Driving Range Fee                        1,327            1,480             1,635                1,651             1,605            1,600          1,680           1,730           1,782          1,836
  Concessions / Other                     13,156           20,073            11,664               12,159            13,910           13,910         14,606          15,044          15,495         15,960
  Pro Shop Rental                          4,250            4,250             4,250                4,250             4,250            2,790          2,790           2,790           2,790          2,790
  Transfers In                B              -            114,500           165,000               93,000               -                -              -               -               -              -
Total Revenues / Sources               1,083,059        1,262,148         1,335,655            1,169,150         1,019,173        1,017,710      1,068,456       1,100,426       1,133,355      1,167,272
Percent Increase                           -1.7%            16.5%              5.8%               -12.5%            -12.8%            -0.1%           5.0%            3.0%            3.0%           3.0%

                                       Actual           Actual            Actual               Actual            Modified         Adopted       Estimated      Estimated       Estimated       Estimated
         Expenses            Note
                                       FY06             FY07              FY08                 FY09               FY10             FY11           FY12           FY13            FY14            FY15
  Personnel                   C          639,884          664,098           732,933              805,091           818,092          873,200        909,577         950,505         998,307      1,052,146
  Contract Services                       85,628          127,751           136,022              138,743           163,223          157,690        159,267         160,860         162,468        164,093
  Commodities                 D          190,500          226,227           240,513              261,032           281,785          288,360        297,011         305,921         315,099        324,552
  Capital Outlay                          22,015           33,210            42,404               86,239           109,300           95,700         95,700          95,700          95,700         95,700
  Admin. Charge               E          173,380           89,500            92,200               95,000            97,900          165,750        334,815         338,163         342,390        346,670
  Debt Service                F           10,106           12,330            12,208               11,944            11,600           10,900         10,162           9,418           8,674          7,930
  Other                       G           71,237          139,190           125,791              110,139           120,100          100,100        100,100         100,100         100,100        100,100
Total Operating Expenses               1,192,750        1,292,306         1,382,071            1,508,188         1,602,000        1,691,700      1,906,632       1,960,667       2,022,739      2,091,190
Percent Increase                           -4.0%             8.3%              6.9%                 9.1%              6.2%             5.6%          12.7%            2.8%            3.2%           3.4%

Working Capital, Beginning                                                                                       (1,108,828)      (1,691,655)   (2,365,645)     (3,203,821)     (4,064,062)     (4,953,445)
 Net Change                                                                                                        (582,827)        (673,990)     (838,176)       (860,241)       (889,384)       (923,918)
Working Capital, Ending                (713,432)        (749,503)            (827,807)     (1,108,828)           (1,691,655)      (2,365,645)   (3,203,821)     (4,064,062)     (4,953,445)     (5,877,364)
                                                                                                                                   NOTES:
 In 2006, the Mayor and Council                                  FY06 - FY15 Working Capital (millions)                            A. Revenues are projected to increase by 5% in FY 2012 due to the new
                                             $1
                                                                                                                                   point of sale system, and 3% each year starting in FY 2013 due to overall
 adopted a five-year business plan           $0
                                            -$1                                                                                    improvements in the economy.
 intended to help RedGate achieve                                                                                                  B. Refers to the transfer from the General Fund to support capital
                                            -$2
 sufficient revenues in order to pay        -$3                                                                                    improvements to the course. The General Fund transferred $372,500
 for course operations, capital             -$4                                                                                    over a three year period in accordance with the business plan.
 outlay, and infrastructure                 -$5                                                                                    C. Personnel is estimated to increase by an average annual 5.1% over
                                            -$6                                                                                    the projection period, mainly due to increases in benefits.
 improvements. Recognizing that
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 the financial situation of the Fund                                                                                               D. Contract Services and Commodity expenses are estimated to increase
                                                                                                                                   each year by approximately 1% and 3% respectively, while Capital Outlay
 is not improving, the Mayor and                               FY06 - FY15 Revenues and Expenses (millions)                        remains flat over the projection period.
 Council directed staff to research         $4
                                                                                                                                   E. Refers to the transfer to the General Fund, which increased in FY 2011
 alternative management options.            $3                    Revenues                                                         per the updated Cost Allocation Plan, with 1% increases each year for FY
 Pending completion of that                                       Expenses                                                         2012 and FY 2013, and 1.25% increases in FY 2014 and FY 2015.
 research, FY 2011 will continue            $2                                                                                     (*Note: as part of the five-year business plan this charge was reduced by
 with the business plan, which                                                                                                     half from FY 2007 through FY 2011 for a total RedGate savings of
                                            $1                                                                                     $540,350. Starting in FY 2012, the full amount will be charged).
 allows for the administrative
                                                                                                                                   F. Debt Service amounts represent interest payments based on current
 charge to be reduced by half.              $0
                                                                                                                                   debt schedules. No additional debt is anticipated.
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                                                                                                                                   G. Includes depreciation which is estimated to remain flat.
                                                                                                  4 - 11
                                        Speed Camera Fund Five-Year Forecast
        Revenues /                      Actual          Actual            Actual             Actual             Modified         Adopted      Estimated       Estimated      Estimated       Estimated
                             Note
         Sources                        FY06            FY07              FY08               FY09                FY10             FY11          FY12            FY13           FY14            FY15
  Speed Camera Citations      A              -                81,991      4,036,564          2,756,463          1,319,890        1,344,000      1,344,000       1,344,000      1,344,000       1,344,000
  Interest Income / Other     B              -                   -           24,470             20,984              2,500            5,000         37,300          76,900         41,300          24,100
Total Revenues / Sources                     -                81,991      4,061,034          2,777,447          1,322,390        1,349,000      1,381,300       1,420,900      1,385,300       1,368,100
Percent Increase                             N/A                  N/A      4,853.0%             -31.6%             -52.4%             2.0%           2.4%            2.9%          -2.5%           -1.2%

                                        Actual          Actual            Actual             Actual             Modified         Adopted      Estimated       Estimated      Estimated       Estimated
       Expenditures          Note
                                        FY06            FY07              FY08               FY09                FY10             FY11          FY12            FY13           FY14            FY15
  Personnel                  C               -            48,760            158,322            343,530            433,483          395,990        412,601         431,300        453,131         477,733
  Contract Services                          -            38,149          1,336,167            959,476            607,300          574,840        575,044         575,251        575,459         575,670
                             D
  Commodities                                -             2,115              4,258             22,470             32,841           11,720         12,072          12,434         12,807          13,191
  Capital Outlay                             -            18,855                -                  -                2,200              -              -               -              -               -
  Admin. Charge              E               -               -                  -                  -                  -            222,320        224,543         226,789        229,623         232,494
  Other                      F               -               -                  -               61,549                -                -        1,331,963       1,331,963      1,331,963             -
Total Operating Expenditures                 -           107,879          1,498,747          1,387,025          1,075,824        1,204,870      2,556,223       2,577,736      2,602,984       1,299,088
Percent Increase                             N/A              N/A          1,289.3%              -7.5%             -22.4%            12.0%         112.2%            0.8%           1.0%          -50.1%

Fund Balance, Beginning                      -                -             (25,888)         2,536,398          3,926,820        4,173,386      4,317,516       3,142,594      1,985,757         768,074
  Net Change                                 -            (25,888)        2,562,287          1,390,422            246,566          144,130     (1,174,923)     (1,156,836)    (1,217,684)         69,012
Fund Balance, Ending                         -            (25,888)        2,536,398          3,926,820          4,173,386        4,317,516      3,142,594       1,985,757        768,074         837,086
                                                                                                                                  NOTES:
 The Speed Camera Fund, created                                  FY06 - FY15 Fund Balance (millions)                              A. The projection assumes 2,800 citations paid per month. Revenues are
                                             $6
                                                                                                                                  based on a $40 citation fee which reflects gross revenue to be received.
 in FY 2007, tracks the financial
                                                                                                                                  B. Interest Income is approximately 1% of the estimated fund balance
 transactions associated with the            $4
                                                                                                                                  during the year for FY 2012 and 3% for FY 2013 through FY 2015.
 City's speed camera program. In                                                                                                  C. Personnel is estimated to increase by an average annual 5.2% over
 October 2009, the State passed a            $2                                                                                   the projection period, mainly due to increases in benefits.
 law that changes the threshold                                                                                                   D. Contract Services includes payment to the speed camera vendor. The
                                             $0                                                                                   vendor receives $16.50 from each paid citation. Vendor payments are
 speed limit from 11 miles per hour
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 to 12 miles per hour, and limits the                                                                                             estimated to remain flat over the projection period, while Contract
                                                                                                                                  Services and Commodity expenditures are estimated to increase each
 use of speed cameras in school                                  FY06 - FY15 Revenues and Exp. (millions)                         year by approximately 1% and 3% respectively.
 zones to Monday through Friday              $6
                                                                                                                                  E. Administrative Charges were added to the budget starting in FY 2011
 from 6:00 am to 8:00 pm. This                                                                           Revenues                 consistent with the results of the updated Cost Allocation Plan. The
 new law drastically decreased the           $4                                                          Expenditures             projection assumes a 1% increase each year for FY 2012 and FY 2013,
 total number of citations the City                                                                                               and 1.25% increase in FY 2014 and FY 2015.
 issues, thereby decreasing overall          $2                                                                                   F. Refers to funding programmed for capital improvements that promote
                                                                                                                                  public safety (pedestrian safety, sidewalks, street lighting, etc.).
 program revenues in FY 2011 and
 future years. This Fund supports            $0
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 5.5 FTEs (including 2 Police
 Officers) and several CIP projects
 dedicated to improving pedestrian
 and traffic safety.



                                                                                                4 - 12
                                               Department of the Mayor and Council
                                                                                                                              Department Mission Statement
                                        Department of                                               The Department of the Mayor and Council preserves and enhances the City's
                                    the Mayor and Council                                           identity and quality of life for those who live and work in Rockville by providing
                                                                                                    strategic and policy direction for City services, facilities, and initiatives.


                                                                                                                                   Expenditures History*
                                                                                                   $2,000,000

             City Clerk                    Boards*                   Commissions*                  $1,600,000

        *See pages 2-14 through 2-16 for additional information on the City's Boards and           $1,200,000
         Commissions
                                                                                                    $800,000

                                                                                                    $400,000

                                        Staffing Trend*                                                     $0
    10                                                                                                               Actual        Actual        Actual       Est. Act.     Adopted
                                                                                                                      FY07         FY08          FY09          FY10          FY11
        8

                                                                                                    * The dramatic decrease in expenditures in FY10 is due to the Office of the City Attorney
        6                                       Total
                                                                                                    moving out of the Department of the Mayor and Council to become a stand-alone
 FTEs




                                                                                                    Department.
        4                                      Regular
                                                                                                                                       Use of Funds
        2
                                            Temporary
        0
               Actual          Actual          Actual        Est. Act.       Adopted                             Mayor and
                FY07           FY08            FY09           FY10            FY11                                Council                                          City Clerk
                                                                                                                   40%                                                60%
* The decrease in staffing in FY10 is due to the Office of the City Attorney moving out of
the Department of the Mayor and Council to become a stand-alone Department.




                                                                                             5-1
                                           Department of the Mayor and Council
                                                                          Department Summary

Department Summary
                                  Actual       Adopted        Est. Act.      Adopted                                           Actual    Adopted    Est. Act.    Adopted
                                   FY09           FY10           FY10           FY11                                            FY09        FY10       FY10         FY11
Dept. Expenditures                                                                              Source of
by Division                                                                                     Dept. Funds
Office of the Mayor and                                                                         Departmental Revenue               0          0           0           0
                                236,064        242,600       238,845        237,110
  Council                                                                                         Subtotal                        $0         $0          $0          $0
Office of the City Clerk        331,744        401,800       435,633        361,140             Fund Contribution
Office of the City
                              1,010,653             N/A            N/A            N/A           General Fund (110)          1,575,987    644,400    674,478      598,250
  Attorney*
                                                                                                Stormwater Fund (330)           2,474          0          0            0
Department Total            $1,578,461       $644,400       $674,478       $598,250
                                                                                                  Subtotal                 $1,578,461   $644,400   $674,478     $598,250
                                                                                                Department Total           $1,578,461   $644,400   $674,478     $598,250

                                  Actual       Adopted        Est. Act.      Adopted
                                                                                                                               Actual    Adopted    Est. Act.    Adopted
                                   FY09           FY10           FY10           FY11
                                                                                                                                FY09        FY10       FY10         FY11
Dept. Expenditures
                                                                                                Staffing Summary
by Type
                                                                                                by Division (FTEs)
Salary and Wages               519,782        368,500        372,550        369,920
                                                                                                Regular
Benefits                        93,093         64,500         68,736         82,500
                                                                                                Office of the City Clerk          3.0        3.0         3.0         3.0
Overtime                             0              0              0              0
                                                                                                Office of the City
  Personnel Subtotal          $612,875       $433,000       $441,286       $452,420                                               2.0        N/A         N/A         N/A
                                                                                                  Attorney*
Contractual Services           948,264        146,100        143,020        127,830               Regular Subtotal                5.0        3.0         3.0         3.0
Commodities                     17,322         65,300         90,172         18,000             Temporary
Capital Outlays                      0              0              0              0             Office of the City Clerk          0.1        0.2         0.2         0.1
Other                                0              0              0              0             Office of the City
  Operating Subtotal          $965,586       $211,400       $233,192       $145,830                                               0.5        N/A         N/A         N/A
                                                                                                  Attorney*
Department Total            $1,578,461       $644,400       $674,478       $598,250               Temporary Subtotal              0.6        0.2         0.2         0.1
*     The Office of the City Attorney became a stand-alone Department in FY10.                  Department Total                  5.6        3.2         3.2         3.1
      Although the Division pages were moved from this section to the Department of the
      City Attorney section, FY09 budget numbers and FTEs are included with the
      department summary charts on this page.




                                                                                          5-2
                                          Department of the Mayor and Council
                                                                    Department Summary

                                                                                            Significant Changes:
Department Summary
Department Overview:                                                                        Adopted FY10 to Estimated Actual FY10
                                                                                            Personnel expenses are estimated to increase by $8,300 due to increased
The Mayor and Council legislate for the protection and promotion of the health,             salary and benefit costs. Commodity expenditures are estimated to increase by
safety, comfort, and welfare of the residents of Rockville and for the preservation         a net total of $24,900 mainly due to the addition of purchase orders that carried
of the City’s property, rights, and privileges. The Mayor and Council conduct               over from FY09, and commodity expenditures that were reduced to offset
regularly scheduled meetings, which may include public hearings required by                 decreased revenue projections during FY10.
City law. They use these meetings and hearings to receive citizen input, provide
instruction to staff, introduce and adopt legislation, discuss issues of concern to         Estimated Actual FY10 to Adopted FY11
the community and review and approve the annual operating budget and the                    Personnel expenditures increased by $11,100 due to an increase in benefit
Capital Improvements Program (CIP).                                                         costs. Contractual services expenditures decreased by $15,200 due to the
                                                                                            removal of election costs. Commodity expenditures decreased by $72,200 due
The Mayor and Council also meet with members of the City’s boards,
                                                                                            to the removal of $34,800 in election costs and the removal of a one-time
commissions, committees, and neighborhood groups when circumstances
                                                                                            expense related to the codification of the new zoning ordinance, which was
dictate. Throughout the year, the Mayor and Council represent the City at many
                                                                                            carried over from FY09.
official functions and community activities, which range from meetings of
neighborhood associations to events sponsored by businesses and organizations
located in Rockville.

The Mayor and Council participate in a number of organizations and activities
related to effective governance from a local, State, and national perspective. The
Mayor and Council regularly attend the Maryland Municipal League’s (MML)
chapter meetings and annual convention and some members have attended
meetings of the National League of Cities (NLC). The Mayor is a member of the
U.S. Conference of Mayors and the Maryland Mayors Association. Individual
members of the Mayor and Council or their designees also serve on the following
Metropolitan Washington Council of Government’s (COG) committees: the Board
of Directors; Human Services and Public Safety; Transportation Planning;
Washington Air Quality; Metropolitan Development Policy; Climate Energy and
Environmental Policy; and the Chesapeake Bay and Water Resources Policy.

The Office of the City Clerk supports the Mayor and Council in carrying out their
mission by providing them with administrative and clerical assistance, attending
all official meetings of the elected body, preparing and managing the records of
actions of the meetings, serving as a liaison between the Mayor and Council and             From left to right: Councilmember Piotr Gajewski, Councilmember Mark
the citizens of Rockville, coordinating the appointment process for City boards             Pierzchala, Mayor Phyllis Marcuccio, Councilmember Bridget Donnell Newton,
and commissions, and working with the City’s Board of Elections to administer a             and Councilmember John B. Britton
fair and impartial City election.




                                                                                      5-3
                                    Department of the Mayor and Council
                                           Division: Office of the Mayor and Council

Division: Office of the Mayor and Council
                           Actual     Adopted    Est. Act.    Adopted                                   Actual    Adopted    Est. Act.    Adopted
                            FY09         FY10       FY10         FY11                                    FY09        FY10       FY10         FY11
Division Expenditures                                                         Source of
by Cost Center                                                                Division Funds
Mayor and Council        236,064      242,600    238,845      237,110         Departmental Revenue         0           0           0           0
Division Total          $236,064     $242,600   $238,845     $237,110           Subtotal                  $0          $0          $0          $0
                                                                              Fund Contribution
                                                                              General Fund (110)      236,064     242,600    238,845      237,110
                           Actual     Adopted    Est. Act.    Adopted           Subtotal             $236,064    $242,600   $238,845     $237,110
                            FY09         FY10       FY10         FY11         Division Total         $236,064    $242,600   $238,845     $237,110
Division Expenditures
by Type
Salary and Wages         108,181      108,200    108,200      108,200
Benefits                   9,510        9,500      9,245        9,920
Overtime                       0            0          0            0
  Personnel Subtotal    $117,691     $117,700   $117,445     $118,120
Contractual Services     110,042      115,100    111,600      111,490
Commodities                8,331        9,800      9,800        7,500
Capital Outlays                0            0          0            0
Other                          0            0          0            0
  Operating Subtotal    $118,373     $124,900   $121,400     $118,990
Division Total          $236,064     $242,600   $238,845     $237,110




                                                                        5-4
                                          Department of the Mayor and Council
                                                    Division: Office of the Mayor and Council

Division: Office of the Mayor and Council
Division Purpose:

The Mayor and Council legislate for the protection and promotion of the health,
safety, comfort, and welfare of the residents of Rockville and for the preservation
of the City’s property, rights, and privileges.

Significant Changes:

Adopted FY10 to Estimated Actual FY10
None.

Estimated Actual FY10 to Adopted FY11
None.

The Mayor and Council’s Vision 2020: (Full descriptions can be found in
Section 2 of this book.)

         Strong and Distinctive Neighborhoods
         Urban Sensitivity
         Engaged Governance
         Business Friendly
         Multimodal Transportation
         Exceptional City Services and Amenities
         Quality Environment




                                                                                      5-5
                                       Department of the Mayor and Council
                                                    Division: Office of the City Clerk

Division: Office of the City Clerk

                              Actual     Adopted    Est. Act.    Adopted                                       Actual    Adopted    Est. Act.    Adopted
                               FY09         FY10       FY10         FY11                                        FY09        FY10       FY10         FY11
Division Expenditures                                                            Source of
by Cost Center                                                                   Division Funds
Office of the City Clerk    331,744      401,800    435,633      361,140         Departmental Revenue             0           0           0           0
Division Total             $331,744     $401,800   $435,633     $361,140           Subtotal                      $0          $0          $0          $0
                                                                                 Fund Contribution
                                                                                 General Fund (110)          331,744     401,800    435,633      361,140
                              Actual     Adopted    Est. Act.    Adopted           Subtotal                 $331,744    $401,800   $435,633     $361,140
                               FY09         FY10       FY10         FY11         Division Total             $331,744    $401,800   $435,633     $361,140
Division Expenditures
by Type
Salary and Wages            245,851      260,300    264,350      261,720                                       Actual    Adopted    Est. Act.    Adopted
Benefits                     60,652       55,000     59,491       72,580                                        FY09        FY10       FY10         FY11
Overtime                          0            0          0            0         Staffing Summary
  Personnel Subtotal       $306,503     $315,300   $323,841     $334,300         by Cost Center (FTEs)
Contractual Services         16,999       31,000     31,420       16,340         Regular
Commodities                   8,242       55,500     80,372       10,500         Office of the City Clerk         3.0        3.0         3.0         3.0
Capital Outlays                   0            0          0            0           Regular Subtotal               3.0        3.0         3.0         3.0
Other                             0            0          0            0         Temporary
  Operating Subtotal        $25,241      $86,500   $111,792      $26,840         Office of the City Clerk         0.1        0.2         0.2         0.1
Division Total             $331,744     $401,800   $435,633     $361,140           Temporary Subtotal             0.1        0.2         0.2         0.1
                                                                                 Division Total                   3.1        3.2         3.2         3.1




                                                                           5-6
                                          Department of the Mayor and Council
                                                            Division: Office of the City Clerk

Division: Office of the City Clerk                                                                     With the help of the City’s Board of Supervisors of Elections, facilitate
                                                                                                       the implementation of any changes to the City’s election laws and/or
Division Purpose:                                                                                      practices in order to incorporate the use of technology in the City’s
                                                                                                       election process in anticipation of planning for the 2011 election
The Office of the City Clerk supports the Mayor and Council in carrying out their                      Facilitate the appointment process for City boards and commissions
mission by providing administrative and clerical assistance, attending all official                    including any changes made by the Mayor and Council in 2009
meetings of the elected body, preparing and managing the records of actions of
the meetings, serving as a liaison between the Mayor and Council and the                               With the assistance of the City’s Department of Information and
citizens of Rockville, coordinating the appointment process for the City boards                        Technology, explore new technologies to improve the updating, storing
and commissions, and administering a fair and impartial process for City                               and retrieving of City records, and develop a new database to replace
elections.                                                                                             the antiquated Critical Document Monitor (CDM) currently used to track
                                                                                                       City contracts approved by the Mayor and Council
Significant Changes:
                                                                                            Performance Measures:
Adopted FY10 to Estimated Actual FY10                                                                                              Actual        Target     Est. Act.      Target
Personnel expenses are estimated to increase by $8,500 due to increased salary                                                      FY09          FY10         FY10         FY11
and benefit costs. Commodity expenditures are estimated to increase by a net
total of $24,900 mainly due to the addition of $47,700 in purchase orders that                  Increase the percent of
carried over from FY09, and a total of $18,400 in commodity expenditures that                   employee users rating the
were reduced to offset decreased revenue projections during FY10.                               overall quality of services      172 / 206    172 / 206    172 / 206     175 / 206
                                                                                                provided by the Clerk’s            or 84%       or 84%       or 84%        or 85%
Estimated Actual FY10 to Adopted FY11                                                           Office as “excellent” or
                                                                                                “good” to 85% *
Personnel expenditures increased by $10,500 due to an increase in benefit
costs. Contractual services expenditures decreased by $15,100 due to the                        Maintain 100% of absentee
removal of election costs. Commodity expenditures decreased by $69,900 due                      ballots processed within two
to the removal of $32,500 in election costs and the removal of a one-time                                                                     300 / 300    284 / 284
                                                                                                business days of receiving a          N/A                                      N/A
expense related to the codification of the new zoning ordinance, which was                                                                     or 100%      or 100%
                                                                                                legitimate application during
carried over from FY09.                                                                         election years
                                                                                                Increase the percentage of                         300 /        284 /
Objectives:                                                                                     voters voting by absentee             N/A         5,900        6,341           N/A
                                                                                                ballot to 5%                                      or 5%        or 4%
         Maintain a comprehensive calendar and log of neighborhood and civic
                                                                                            *      The City conducts an internal employee survey. The last survey was conducted in
         group meetings and events requesting the Mayor and Council’s
                                                                                                   FY08 and the next survey will take place in FY11.
         participation, focusing on activities related to the Mayor and Council’s
         goals
         Continue to perfect electronic information on agendas, minutes, legal
         notices, and the City’s website to encourage participation in City
         government and to encourage citizens to serve on City boards and
         commissions




                                                                                      5-7
                                   Department of the Mayor and Council
                                                    Division: Office of the City Clerk

Workload Measures:

                               Actual    Estimate   Est. Act.   Estimate
                                FY09         FY10      FY10         FY11
 Number of Boards and
 Commissions:
   Applications                   62           65         49          72
   Appointments and
   Reappointments                 60           65         48          72
 Number of Mayor and
 Council candidates
                                 N/A           10         14         N/A
 processed during election
 years

 Number of documents
 prepared/processed:
     Agenda meeting               57           40         36          45
     packets
     Zoning applications          10           20         17          20
     Public Hearing notices       22           25         34          25
                                                                                 Election Day in the City of Rockville – November 3, 2009
 Number of pages of minutes
                                 230         250         360         300
 prepared
 Number of meetings
 supported:
    Mayor and Council
    meetings                      42           40         36          45
    Board of Supervisors of
    Elections, Compensation
    Commission, trainings         15           12         12          13


Regular Positions:

                                        Adopted     Adopted     Adopted
 Position Title
                                           FY09        FY10        FY11
 City Clerk/Treasurer                        1.0         1.0         1.0
 Deputy City Clerk                           1.0         1.0         1.0
 Assistant to the City Clerk                 1.0         1.0         1.0
 Total                                       3.0         3.0         3.0



                                                                           5-8
                                                   Department of the City Attorney
                                                                                                                       Department Mission Statement
                                    Department of                                               The City Attorney’s Office is dedicated to providing expert legal advice and
                                the Mayor and Council                                           skilled legal support to the Mayor and Council, the City’s Boards and
                                                                                                Commissions, and City staff on all legal matters affecting the City. The City
                                                                                                Attorney’s Office strives to provide proactive counsel, preventive advice and
                                                                                                early intervention to assist the City in developing a clear understanding of all of
                                                                                                its legal options.

                                                                                                                                 Expenditures History*
                                      City Attorney                                              $1,200,000

                                                                                                 $1,100,000

                                                                                                 $1,000,000

                                                                                                   $900,000

                                    Staffing Trend*                                                $800,000
    6
                                                                                                   $700,000
                                                                                                                   Actual        Actual        Actual      Est. Act.     Adopted
                                                                                                                    FY07         FY08          FY09         FY10          FY11
    4
 FTEs




                                        Total
                                                                                                *The Office of the City Attorney became a stand alone department in FY10; however,
                                                     Regular
                                                                                                historical expenditure data from the cost center is shown on this Expenditures History
    2                                                                                           Chart for comparison purposes.

                                           Temporary                                                                              Use of Funds
    0
          Actual           Actual         Actual         Est. Act.       Adopted
           FY07            FY08           FY09            FY10            FY11
                                                                                                                                    City Attorney
*The Office of the City Attorney became a stand alone department in FY10; however,                                                      100%
historical staffing data from the cost center is shown on this Staffing Trend Chart for
comparison purposes.




                                                                                          6-1
                                                   Department of the City Attorney
                                                                           Department Summary

Department Summary
                                    Actual      Adopted        Est. Act.      Adopted                                           Actual    Adopted    Est. Act.    Adopted
                                     FY09          FY10           FY10           FY11                                            FY09        FY10       FY10         FY11
Dept. Expenditures                                                                               Source of
by Cost Center                                                                                   Dept. Funds
Office of the City Attorney*           N/A      908,500       955,546        929,350             Departmental Revenue             N/A          0           0           0
Department Total                       N/A     $908,500      $955,546       $929,350               Subtotal                       N/A         $0          $0          $0
                                                                                                 Fund Contribution
                                                                                                 General Fund (110)               N/A     908,500    955,546      929,350
                                    Actual      Adopted        Est. Act.      Adopted            Subtotal                         N/A    $908,500   $955,546     $929,350
                                     FY09          FY10           FY10           FY11            Department Total                 N/A    $908,500   $955,546     $929,350
Dept. Expenditures
by Type
Salary and Wages                       N/A      563,400       508,400        559,070                                            Actual    Adopted    Est. Act.    Adopted
Benefits                               N/A      101,600       106,546        135,670                                             FY09        FY10       FY10         FY11
Overtime                               N/A            0             0              0             Staffing Summary
  Personnel Subtotal                   N/A     $665,000      $614,946       $694,740             by Cost Center (FTEs)
Contractual Services                                                                             Regular
                                       N/A      230,600       327,700        225,710
Commodities                            N/A        7,900         7,900          3,900             Office of the City Attorney*     N/A         5.0         5.0         5.0
Capital Outlays                        N/A        5,000         5,000          5,000             Regular Subtotal                 N/A         5.0         5.0         5.0
Other                                  N/A            0             0              0             Temporary
  Operating Subtotal                   N/A     $243,500      $340,600       $234,610             Office of the City Attorney*     N/A         0.0         0.2         0.0
Department Total                       N/A     $908,500      $955,546       $929,350               Temporary Subtotal             N/A         0.0         0.2         0.0
*   The Office of the City Attorney moved out of the Department of the Mayor and Council
                                                                                                 Department Total                 N/A         5.0         5.2         5.0
    to become a stand-alone Department in FY10. The FY09 budget numbers and FTEs
    are included with the department summary charts in Section 5, the Department of the
    Mayor and Council.




                                                                                           6-2
                                                  Department of the City Attorney
                                                          Division: Office of the City Attorney

                                                                                              Objectives:
Department Summary
Department Overview:                                                                                 •    Provide legal advice and counsel to the Mayor and Council, the City’s
                                                                                                          Boards and Commissions, and the City staff on all legal matters
The City Attorney’s Office (CAO) is the department responsible for providing                              affecting the City
legal support to the City of Rockville. In that capacity, the CAO serves as the
legal advisor to the Mayor and Council, all Boards and Commissions, and the                          •    Represent the City before Federal and State courts in all legal
City staff on all legal matters affecting the City; reviews for legal sufficiency all                     proceedings in which the City has an interest
agreements to which the City is a party; prepares and/or reviews legal                               •    Prepare, negotiate and/or review all legal documents involving the City
documents for the City; is responsible for preparing and/or revising additions and                        including agreements, contracts, deeds, bonds, leases, procurement
amendments to the Rockville City Code for enactment by the Mayor and Council;                             materials, releases, licenses, easements, and memoranda of
and represents the City before administrative agencies and Federal and State                              understanding
courts in legal proceedings in which the City has an interest.
                                                                                                     •    Prepare and/or review City ordinances and resolutions for adoption by
Significant Changes:                                                                                      the Mayor and Council

Adopted FY10 to Estimated Actual FY10                                                                •    Review proposed legislation for legal sufficiency and to ensure
                                                                                                          compliance with Federal, State, and local law
Personnel expenditures decreased by $50,100 due to savings from vacant
positions throughout the year. Contractual services expenditures increased by
$97,100 due to outside legal services fees.                                                   Regular Positions:

Estimated Actual FY10 to Adopted FY11                                                                                                             Adopted         Adopted         Adopted
                                                                                                  Position Title
                                                                                                                                                    FY09*            FY10            FY11
Personnel expenditures increased by $79,800 due to a full year of fully staffed
personnel costs and increased benefit costs. Contractual services expenditures                    City Attorney                                       0.0              1.0             1.0
decreased by $102,000 due to a reduction in outside legal services fees.                          Assistant City Attorney**                           0.0              2.0             2.0
                                                                                                  Assistant to the City Attorney                      1.0              1.0             1.0
                                                                                                  Legal Secretary                                     0.0              1.0             1.0
                                                                                                  Total                                               1.0              5.0             5.0
                                                                                              *      FY09 positions were part of the Department of the Mayor and Council, but are shown
                                                                                                     here for comparison purposes.
                                                                                              **     The Assistant City Attorney position is a banded position and can be hired at either of
                                                                                                     two levels.




                                                                                        6-3
                                                  Department of the City Attorney
                                                            Division: Office of the City Attorney

Workload Measures:
                                      Actual    Estimate      Est. Act.   Estimate
                                       FY09         FY10         FY10         FY11
    Number of Mayor and
    Council and Boards and
                                         N/A          N/A          N/A           55
    Commissions meetings
    attended

    Number of ordinances and
    resolutions prepared and/or
                                         N/A          N/A          N/A           24
    reviewed for adoption by the
    Mayor and Council

    Number of contracts
                                         N/A          N/A          N/A           50
    reviewed and/or prepared

    Number of development
    related agreements                   N/A          N/A          N/A           35
    reviewed and/or prepared*

    Number of administrative
                                         N/A          N/A          N/A            3
    appeals defended in court

    Number of municipal
                                         N/A          N/A          N/A           60
    infractions filed in court

*      Development related agreements include, but are not limited to, stormwater
       management easements, storm drain and storm sewer easements, transportation
       demand management agreements, forest conservation and maintenance agreements,
       public access easements, and licenses.




                                                                                       6-4
                                                 Department of the City Manager
                                                                                                                     Department Mission Statement
                                 Department of the                                            The Department of the City Manager implements the policies and strategic
                                   City Manager                                               plans of the Mayor and Council, provides professional recommendations to the
                                                                                              Mayor and Council, and oversees the day-to-day management of City
                                                                                              operations.

                                                                                                                              Expenditures History*
                                                                                              $6,000,000

                                Communication and                Neighborhood                 $5,000,000
    Executive Office
                                 Public Information            Resources Program
                                                                                              $4,000,000

                                                                                              $3,000,000

                                                                                              $2,000,000

                                     Staffing Trend*                                          $1,000,000
        35                                                                                                     Actual        Actual        Actual      Est. Act.    Adopted
                                                Total                                                           FY07          FY08         FY09         FY10         FY11
        30
                                                                                              * The increases in expenditures in FY09, FY10, and FY11 are due primarily to the
        25                                     Regular                                        following: in mid-FY09 the Cable Television cost center was moved from the Department
                                                                                              of Information and Technology to the Department of the City Manager under the
        20
 FTEs




                                                                                              Communication and Public Information Division; in FY10 there was a planned cable
        15                                                                                    grant-funded television equipment replacement and a full year of Cable Television
                                                                                              funding; and in FY11 funding for REDI was transferred in from Non-Departmental.
        10
         5
                                                                                                                             Use of Funds
                                             Temporary                                                                                              Neighborhood
         0                                                                                                                                           Resources
             Actual         Actual         Actual        Est. Act.      Adopted                            Executive                                  Program
              FY07           FY08          FY09           FY10           FY11                               Office                                       9%
                                                                                                             40%
* The increase in staffing in FY09 was due to the Cable Television cost center moving
from the Department of Information and Technology to the Department of the City
Manager under the Communication and Public Information Division.
                                                                                                                                                         Comm. and
                                                                                                                                                            Public
                                                                                                                                                         Information
                                                                                                                                                             51%




                                                                                        7-1
                                                 Department of the City Manager
                                                                        Department Summary

Department Summary
                                  Actual      Adopted       Est. Act.     Adopted                                               Actual      Adopted       Est. Act.     Adopted
                                   FY09          FY10          FY10          FY11                                                FY09          FY10          FY10          FY11
Dept. Expenditures                                                                           Source of
by Division                                                                                  Dept. Funds
Executive Office              1,229,646     1,217,800     1,188,654      1,815,580           Departmental Revenue
Communication & Public                                                                       Cable Operating Grant **
                              1,599,693     2,410,600     2,407,314      2,281,700                                                 N/A           N/A           N/A       71,040
  Information*                                                                                 (110)
Neighborhood                                                                                 Cable Capital Grants
                                344,589       374,500       364,864       390,050                                             362,909       272,332       406,333       408,800
  Resources                                                                                    (350)
Department Total             $3,173,928    $4,002,900    $3,960,832     $4,487,330             Subtotal                      $362,909      $272,332      $406,333      $479,840
                                                                                             Fund Contribution
                                  Actual      Adopted       Est. Act.     Adopted            General Fund (110)             3,120,120  3,501,000         3,458,932     4,007,490
                                   FY09          FY10          FY10          FY11            Special Activities (350)        (309,101)   229,568            95,567             0
Dept. Expenditures                                                                             Subtotal                    $2,811,019 $3,730,568        $3,554,499    $4,007,490
by Type
                                                                                             Department Total              $3,173,928 $4,002,900        $3,960,832    $4,487,330
Salary and Wages              1,944,699     2,147,100     2,158,916      2,176,750
Benefits                        446,503       465,600       497,778        618,950                                              Actual      Adopted       Est. Act.     Adopted
Overtime                          2,990         2,700         4,550          2,700                                               FY09          FY10          FY10          FY11
  Personnel Subtotal         $2,394,192    $2,615,400    $2,661,244     $2,798,400           Staffing Summary
Contractual Services            560,676       715,900       634,988        566,310           by Division (FTEs)
Commodities                     158,012       167,900       157,889        151,400           Regular
Capital Outlays                  61,048       503,700       506,711        410,600           Executive Office                       9.5           8.5           8.5           8.5
Other                                 0             0             0        560,620           Communication & Public
                                                                                                                                   15.5          15.5          15.5          15.5
  Operating Subtotal           $779,736    $1,387,500    $1,299,588     $1,688,930             Information
Department Total             $3,173,928    $4,002,900    $3,960,832     $4,487,330           Neighborhood
                                                                                                                                    4.0           4.0           4.0           4.0
                                                                                               Resources
*   In mid-FY09 the Cable Television cost center was moved from the Department of
    Information and Technology into the City Manager’s Office under the Public                 Regular Subtotal                    29.0          28.0          28.0          28.0
    Information and Communication Division, so the Actual FY09 figures above capture         Temporary
    only approximately five months of Cable Television expenditures. The remaining           Communication & Public
    FY09 expenditures can be seen in the Department of Information and Technology on                                                0.5           0.3           0.4           0.3
                                                                                               Information
    pg. 11-2.
                                                                                              Temporary Subtotal                    0.5           0.3           0.4           0.3
                                                                                             Department Total                      29.5          28.3          28.4          28.3
                                                                                             **   The Cable Operating Grant revenue was moved from the Department of Information
                                                                                                  and Technology into the Cable Television cost center for FY11 to more accurately
                                                                                                  reflect the purpose of that grant.




                                                                                       7-2
                                                  Department of the City Manager
                                                                      Department Summary

Department Summary                                                                                Keep the City prepared for unanticipated emergencies, including both
                                                                                                  natural and man-made emergencies, and financial emergencies
Department Overview:                                                                              Develop sustainable practices that are in accordance with the City’s
                                                                                                  sustainability strategy
The Department of the City Manager comprises three divisions and eleven cost                      Maintain productive relationships with Montgomery County, the State of
centers. The Department’s Executive Office Division, with four cost centers,                      Maryland, the Federal Government and other partners in the community
leads the day-to-day management of the entire City government organization and                    Develop and advocate for a legislative program to protect and enhance the
implements the policies, priorities, initiatives and strategic goals of the Mayor and             City’s interests, and seek out State and Federal grant opportunities to
Council. The Communication and Public Information Division, with five cost                        support City projects and programs
centers, provides strategic, community-wide communication and public
information services. Through the Neighborhood Resources Division, which
                                                                                              Significant Changes:
consists of two cost centers, the Department maintains close connections with
neighborhood and civic associations, individual residents, community                          Adopted FY10 to Estimated Actual FY10
organizations and local businesses to promote communication and ensure that                   Personnel expenditures increased by $45,800 due to increases in benefit costs
the City responds to specific needs in the community.                                         and additional compensation needs.           Contractual services expenditures
                                                                                              decreased by a total of $80,900, and commodity expenditures decreased by a
Department Objectives:                                                                        total of $10,000 mainly to offset decreased revenue projections during FY10.
    Ensure the successful implementation of the Mayor and Council Vision.
                                                                                              Estimated Actual FY10 to Adopted FY11
    Manage the City government’s day-to-day operations to deliver high value
    City services to Rockville residents                                                      Personnel expenditures increased by $137,200 due to increases in benefit costs.
                                                                                              Contractual services expenditures decreased by $68,700 due to the removal of
    Keep the Mayor and Council, and the community, informed about City
                                                                                              $75,000 for a one-time branding study, a transfer of $9,600 in outside printing
    operations and the provision of City services, and changes affecting City
                                                                                              costs to responsible departments, and an increase in funding for the biennial
    services and operations
                                                                                              citizen survey. Commodity expenditures decreased by $6,500 due to reductions
    Guide the development of a performance-based operating and capital                        in supplies and equipment. Capital outlay expenditures decreased by a total of
    budget that reflects the Mayor and Council Vision and makes the most                      $96,100 due mainly to a planned decrease in expenditures in the Cable TV
    efficient use of taxpayer dollars                                                         Equipment cost center. Other expenditures increased by $560,600 due to the
    Ensure staff reports prepared for the Mayor and Council are clear, accurate,              transfer of funding for REDI and the Rockville Scholarship Foundation from Non-
    and complete, and include realistic, fact-based, and thoughtful options and               Departmental to the City Manager’s Office for FY11, and the addition of funding
    recommendations                                                                           for the Rockville Chamber of Commerce’s Buy Rockville Campaign, Part 2.
    Continue to develop ways to engage residents by utilizing existing and
    evolving communication technologies and methods
    Prepare and implement communication plans for CIP projects, planning
    projects, and other special projects as necessary
    Coordinate interdepartmental policies, projects, and solutions to problems
    Promote high quality internal and external customer service throughout the
    organization through training, employee recognition, and customer surveys
    Ensure high performance by promoting leadership, teamwork, and
    continuous improvement
    Anticipate the changing needs of the community, and effect organizational
    change to meet those needs

                                                                                        7-3
                                               Department of the City Manager
                                                               Division: Executive Office

Division: Executive Office
                                 Actual     Adopted       Est. Act.     Adopted                                       Actual     Adopted      Est. Act.     Adopted
                                  FY09         FY10          FY10          FY11                                        FY09         FY10         FY10          FY11
Division Expenditures                                                                     Source of
by Cost Center                                                                            Division Funds
Administration                 896,482      809,600       690,640       672,000           Departmental Revenue            0            0            0             0
Management Systems &                                                                        Subtotal                     $0           $0           $0            $0
                               167,477      216,600       323,809       431,610
  Intergovt. Affairs                                                                      Fund Contribution
Organizational                                                                            General Fund (110)       1,229,646    1,217,800    1,188,654     1,815,580
                               165,687      191,600       174,205       181,850
  Development                                                                               Subtotal              $1,229,646   $1,217,800   $1,188,654    $1,815,580
Rockville Economic Dev.,                                                                  Division Total
                                    N/A          N/A           N/A      530,120                                   $1,229,646   $1,217,800   $1,188,654    $1,815,580
  Inc. (REDI)*
Division Total              $1,229,646    $1,217,800   $1,188,654     $1,815,580
                                                                                                                      Actual     Adopted      Est. Act.     Adopted
                                 Actual     Adopted       Est. Act.     Adopted                                        FY09         FY10         FY10          FY11
                                  FY09         FY10          FY10          FY11           Staffing Summary
Division Expenditures                                                                     by Cost Center (FTEs)
by Type
                                                                                          Regular
Salary and Wages               856,788       807,400      817,400        825,070          Administration                 6.5          5.5          5.5           4.5
Benefits                       180,895       173,900      187,223        223,910          Management Systems &
Overtime                         1,519             0        1,850              0                                         2.0          2.0          2.0           3.0
                                                                                            Intergovt. Affairs
  Personnel Subtotal        $1,039,202      $981,300   $1,006,473     $1,048,980          Organizational
Contractual Services                                                                                                     1.0          1.0          1.0           1.0
                               152,271       202,300      153,981        177,780            Development
Commodities                     38,173        34,200       28,200         28,200            Regular Subtotal             9.5          8.5          8.5           8.5
Capital Outlays                      0             0            0              0          Temporary
Other                                0             0            0        560,620            Temporary Subtotal           0.0          0.0          0.0           0.0
  Operating Subtotal         $190,444       $236,500    $182,181        $766,600          Division Total                 9.5          8.5          8.5           8.5
Division Total              $1,229,646    $1,217,800   $1,188,654     $1,815,580
*   For FY11, REDI became a stand-alone cost center and was transferred from Non-
    Departmental to the Department of the City Manager.




                                                                                    7-4
                                              Department of the City Manager
                                                              Division: Executive Office

Division: Executive Office                                                                                   Cost Center: Administration
Division Purpose:                                                                       Cost Center Summary:
The Executive Office Division provides leadership and executive management for
the City government administration, under the policy direction of the Mayor and                                        Actual      Adopted        Est. Act.     Adopted
Council. The Division collaborates with and directs departments to manage City                                          FY09          FY10           FY10          FY11
operations, ensure the Mayor and Council’s strategic priorities are met, and            Total Expenditures            896,482       809,600        690,640       672,000
develop and maintain productive relationships with citizens, businesses,                Total Revenues                     N/A           N/A           N/A            N/A
community groups, and other governments. The Division implements and
maintains systems that provide information for decision-making and ensures              Objectives:
timely response to citizen needs. The Division anticipates organization and
community needs, and prepares for and responds to changes that impact the                       Maintain timely and effective communication with the Mayor and Council
City and its residents. The Division also designs and manages programs to
promote high performance.
                                                                                                Implement and communicate the Mayor and Council Vision to City
Significant Changes:                                                                            employees and the public
Adopted FY10 to Estimated Actual FY10                                                           Anticipate future needs, and maintain an understanding of the major
                                                                                                trends and conditions (regional, national and international) affecting the
Personnel expenditures increased by $25,200 due to additional compensation
                                                                                                community to effectively plan for the City’s future
needs and increased benefit costs.           Contractual services expenditures
decreased by a total of $48,300, and commodity expenditures decreased by a                      Oversee the delivery of high value municipal programs and services to
total of $6,000 to offset decreased revenue projections during FY10.                            residents that positively impact the quality of life in Rockville
                                                                                                Continuously improve systems for citizen input, striving to be efficient,
Estimated Actual FY10 to Adopted FY11                                                           effective, fair, and inclusive
Personnel expenditures increased by $42,500 due to increases in benefit costs.                  Manage an efficient and effective organization within the parameters
Contractual services expenditures increased by a net $23,800 due to the removal                 and limits of the annual budget, in order to make best use of taxpayer
of travel and training expenses, the removal of $11,000 in FY10 internal survey
                                                                                                resources
costs and the addition of $39,200 for biennial citizen survey costs. Other
expenditures increased by $560,600 due to the transfer of funding for REDI and                  Support departments’ work on the budget, Mayor and Council agenda
the Rockville Scholarship Foundation from Non-Departmental to the Department                    materials, and problem solving to ensure City government runs
of the City Manager for FY11, and the addition of funding for the Rockville                     smoothly
Chamber of Commerce’s Buy Rockville Campaign, Part 2.                                           Work with departments to continually assess and improve the City’s
                                                                                                effectiveness, efficiency, and financial health

                                                                                        Supplemental Information:

                                                                                        Each fiscal year, the City awards funding to outside agencies that provide
                                                                                        services to the residents of Rockville through a competitive application review
                                                                                        process. Such funding totaling $5,500 for the Rockville Scholarship Foundation
                                                                                        (RSF) is included in the Administration cost center’s budget for FY11. The
                                                                                        Foundation provides scholarships to enable members of the Rockville community
                                                                                        to pursue education beyond high school, and to encourage members of the

                                                                                  7-5
                                                Department of the City Manager
                                                               Division: Executive Office

community to assume important roles as leaders in their professions and as                                                       Actual        Target      Est. Act.       Target
future leaders of Rockville,                                                                                                      FY09          FY10          FY10          FY11
                                                                                             Increase the employee
Also included in the Administration cost center’s budget for FY11 is $25,000 for
                                                                                             rating on responsiveness          164 / 210     164 / 210     164 / 210    179 / 210
the Rockville Chamber of Commerce’s Buy Rockville Campaign, Part 2, which
                                                                                             and support to employee             or 78%        or 78%        or 78%       or 85%
will establish the Rockville Rewards Program to support local businesses and
                                                                                             inquiries to 85%***
nonprofits.
                                                                                         *      FY09 and FY10 figures are applicable to the Mayor and Council’s 2008 – 2010 Vision.
                                                                                                FY11 Figures relate to the Vision 2020, which can be found in Section 2 of this
Performance Measures:                                                                           document.
                                                                                         **     The City conducts a citizen survey every other year. A survey was conducted in
                                    Actual      Target     Est. Act.     Target
                                                                                                FY09. The next one will be conducted in FY11.
                                     FY09        FY10         FY10        FY11           ***    The City conducts an employee survey. An employee survey was conducted in FY08
 Number and percent of                                                                          and the next survey will take place in FY11.
 Mayor and Council vision
 priority action items:                                                                  Workload Measures:
     Completed                     18% (6)     73%(24)     67% (22)        50%
     In progress                   70% (23)    18% (6)     30% (10)        30%                                                      Actual    Estimate      Est. Act.   Estimate
     Ongoing                        3% (1)      3% (1)      3% (1)          5%                                                       FY09         FY10         FY10         FY11
     In planning stage              6% (2)      6% (2)      0% (0)         15%               The City Manager and the
     Preliminary research           3% (1)      0% (0)      0% (0)          0%               Assistant City Manager attend
                                  100%(33)    100%(33)    100%(33)        100%                                                          64           40            53           50
 Total*                                                                                      at least 50 community
 Increase the resident                                                                       meetings*
 approval rating of the overall
 direction the City                    64%        64%          64%         68%               Participate in a total of 80
 government is taking to 68%                                                                 hours of professional
 **                                                                                          development by the City                   248          250          158            80
                                                                                             Manager and Assistant City
 Increase resident positive                                                                  Manager* **
 ratings of quality of life in         94%        94%          94%         96%
 Rockville to 96%**                                                                      *      Reduced FY10 estimate due to elimination of one Assistant to the City Manager
 Increase the percent of                                                                        position in mid-FY09.
                                                                                         **     Reduced FY11 estimate due to the reduction of funding in all department budgets for
 residents who agree that the
                                       71%        71%          71%         73%                  training, travel, and professional association dues.
 City welcomes citizen
 involvement from to 73%**
 Increase resident ratings of
 good value for taxes paid to          64%        64%          64%         75%
 75%**

 Increase the employee
 rating on overall customer       210 / 264   210 / 264   210 / 264    224 / 264
 service in the City                or 80%      or 80%      or 80%       or 85%
 Manager’s Office to 85%***



                                                                                   7-6
                                                   Department of the City Manager
                                                                    Division: Executive Office

Regular Positions:                                                                                           Cost Center: Management Systems &
                                                  Adopted      Adopted      Adopted
                                                                                                                   Intergovernmental Affairs
    Position Title
                                                     FY09         FY10         FY11
                                                                                               Cost Center Summary:
    City Manager                                         1.0         1.0          1.0
    Deputy City Manager                                  1.0         0.0          0.0                                             Actual    Adopted          Est. Act.   Adopted
                                                                                                                                   FY09        FY10             FY10        FY11
    Assistant City Manager                               0.0         1.0          1.0
                                                                                               Total Expenditures                167,477        216,600      323,809     431,610
    Assistant to the City Manager                        1.0         0.0          0.0
                                                                                               Total Revenues                       N/A            N/A            N/A        N/A
    Administrative Support Coordinator                   1.0         1.0          1.0
    City Hall Facilities Manager                         0.5         0.5          0.5          Objectives:
    Secretary I*                                         2.0         2.0          1.0                  Coordinate with departments to monitor project work plans in order to
                                                                                                       accomplish the Mayor and Council’s Vision in a timely and cost effective
    Cost Center Total                                    6.5         5.5          4.5
                                                                                                       manner, and keep the Mayor and Council and the community informed
*      A 1.0 FTE Secretary I position moved from the Administration cost center to the
                                                                                                       of progress
       Management Systems & Intergovernmental Affairs cost center for FY11.
                                                                                                       Implement the Citizen Survey in odd numbered fiscal years and
                                                                                                       increase survey response rates in order to receive ongoing citizen
                                                                                                       feedback and drive continuous service improvement
                                                                                                       Respond to citizen service requests (CSR) and complaints/concerns,
                                                                                                       and coordinate with departments to resolve issues in a timely manner

                                                                                                       Serve as the model for customer service in the organization, provide
                                                                                                       customer service training for employees, identify and resolve customer
                                                                                                       service issues within the City government, conduct a “Secret Shopper”
                                                                                                       program, support the annual TUNE UP employee conference, and
                                                                                                       coordinate employee recognition programs
                                                                                                       Develop and carry out the City’s legislative program to protect and
                                                                                                       promote City interests, seek funding, and develop and maintain positive
                                                                                                       and productive working relationships with County, State, and Federal
                                                                                                       counterparts

                                                                                               Performance Measures:

                                                                                                                                      Actual       Target    Est. Act.   Target
                                                                                                                                       FY09         FY10        FY10      FY11
                                                                                                Increase the percent of
                                                                                                                                        124 /        124 /       124 /     135 /
                                                                                                employees rating project
                                                                                                                                          169          169         169       169
                                                                                                tracking work products as
                                                                                                                                      or 73%       or 73%      or 73%    or 80%
                                                                                                “excellent” or “good” to 80% *
                                                                                         7-7
                                                      Department of the City Manager
                                                                        Division: Executive Office

                                           Actual       Target    Est. Act.      Target             Regular Positions:
                                            FY09         FY10        FY10         FY11
    Decrease the average number                                                                                                                          Adopted    Adopted      Adopted
                                                                                                        Position Title
    of days to resolve CSRs (all               10             8          10             9                                                                   FY09       FY10         FY11
    departments) to 9 **                                                                                Assistant to the City Manager                        1.0          1.0            1.0
    Increase the rating to 86% of
                                                         166 /        166 /        142 /                Council Support Specialist                           1.0          1.0            1.0
    residents rating the level of
                                              N/A          195          195          165                Secretary I*                                         0.0          0.0            1.0
    service on CSR’s as
                                                       or 85%       or 85%       or 86%
    “excellent” or “good”                                                                               Cost Center Total                                    2.0          2.0            3.0
    Increase the Citizen Survey
                                             44%          44%          44%          46%             *      A 1.0 FTE Secretary I position moved from the Administration cost center to the
    response rate to 46% ***
                                                                                                           Management Systems & Intergovernmental Affairs cost center for FY11.
    Increase the percent of
    residents rating overall                                                                        Supplemental Information:
                                             76%          76%          76%          80%
    customer service as “excellent”
    or “good” to 80%***                                                                             Citizen Service Requests (CSRs) - The City Manager’s Office receives,
    Maintain the number of                                                                          responds to, and tracks requests from the community for information and
    Rockville legislative priorities                                                                assistance that come to the City Manager’s Office and the Mayor and Council.
    that become Maryland                                  1 or                      1 or            Staff acts in an ombudsman role to fulfill requests and resolve concerns in a
                                                 0                         1
    Municipal League priority                            more                      more             timely manner. Staff provides weekly status reports to the Mayor and Council
    initiatives in the Maryland                                                                     and City Manager to keep them informed about issues and requests that are
    Legislature to 1 or more                                                                        being addressed. The graph below shows the actual number of CSRs that came
    Increase the number of                                                                          through the CSR system from FY05 through FY09, as well as estimates for FY10
    Rockville legislative priorities                                                                and FY11. City departments also receive and respond to numerous citizen
                                                          1 or                      1 or
    that are adopted into law by                 1                         0                        requests, which are not reflected in this graph.
                                                         more                      more
    the Maryland Legislature to 1
    or more                                                                                                            Number of Citizen Service Requests (CSRs) Processed
*      The City conducts an employee survey. An employee survey was conducted in FY08                                                 Through the CSR System
                                                                                                            1,200
       and the next survey will take place in FY11.
**     Under a revised intake process, routine requests are sent to departments to resolve.                 1,100
       More complex requests are resolved through the Department of the City Manager and
       typically take longer to address.                                                                    1,000
***    The City conducts a Citizen Survey every other year. A Citizen Survey was conducted                                                                  1,020    1,000
       in FY09 and the next survey will take place in FY11.                                                   900                                  949
                                                                                                                                898                                             900
                                                                                                              800                        871

                                                                                                              700       785

                                                                                                              600
                                                                                                                       FY05     FY06    FY07      FY08      FY09      FY10      FY11
                                                                                                                                                                     (proj.)    (est.)




                                                                                              7-8
                                                 Department of the City Manager
                                                                  Division: Executive Office

Beginning in FY10, CSRs of a routine nature are forwarded directly to the                            Legislative Priorities                              Result
appropriate department for response including: leaf collection, snow removal,
trash collection, street light outages, sidewalks and street repairs, and tree                                                           Statewide speed camera legislation
trimming requests. These requests are no longer included in the weekly CSR                   Maintain photo radar program in its         was adopted. Montgomery County
report. This adjustment will result in a reduction of CSRs for FY11 and beyond.              current format                              program was grandfathered with a
This shift allows for more efficient and effective operations, and for freeing staff                                                     few changes*
resources for project management and special projects.
                                                                                             Adopt a Negligent Homicide bill to
State Legislation – The Department of the City Manager works with the Mayor                  establish middle ground between a
and Council, the City’s lobbyists, and the Maryland Municipal League to                      mere traffic violation and a strong         Did not pass
introduce and/or support State legislation that benefits Rockville residents and             felony charge for motorists who cause
supports municipal interests. The following table lists legislation topics supported         injury or death to a pedestrian
by the City and their results.
                                                                                             Bond Bill to convert the Old Post Office    $100,000 was included in the State
                                                                                             to the new Rockville Police Station         budget
        Legislative Priorities                             Result
                                        FY07                                                                                       FY10
Allow municipalities to enact                                                                                                         State legislature adopted a budget
development excise taxes on new            Did not pass                                                                               that extends into FY11 and FY12 the
development                                                                                                                           90% plus cuts made to municipal
                                                                                             Preserve municipal revenues
                                                                                                                                      Highway User revenues and the 35%
Allow municipalities to adopt a                                                                                                       police aid reductions made by the
                                           Did not pass
hotel/motel tax                                                                                                                       Board of Public Works in FY10
                                                                                             Adopt a Negligent Homicide bill to
Revise the Metropolitan District Tax
                                                                                             establish a middle ground between a
law to exclude all current and future      Passed and signed into law
                                                                                             mere traffic violation and a strong         Did not pass
Rockville residents
                                                                                             felony charge for motorists who cause
Bond Bill for the Senior Center            $100,000 was included in the State                injury or death to a pedestrian
expansion                                  budget                                            Bond bill for a component of the Senior     $120,000 was included in the State
                                                                                             Center Fitness Expansion project            budget
                                        FY08
                                                                                             *   Changes to program include a 10% cap on speed camera revenues beyond total
Allow municipalities to enact                                                                    Citywide operating revenues (less program expenditures), a limit on speed camera
development excise taxes on new            Did not pass                                          hours of operation in school zones to Monday through Friday 6am to 8pm, and an
development                                                                                      increase in the speed threshold from 11 to 12 miles per hour over the posted speed
                                                                                                 limit.
Allow municipalities to adopt a
                                           Passed and signed into law
hotel/motel tax
Bond Bill for Post Office renovation       Did not pass
                                        FY09
                                           Cuts to Highway User revenue were
                                           minimized, and Program Open Space
Preserve fiscal resources
                                           projects in the pipeline approved for
                                           funding were preserved

                                                                                       7-9
                                                Department of the City Manager
                                                                 Division: Executive Office

Lobbying Services
                                                                                                        Cost Center: Organizational Development
Rockville retains the services of a lobbying firm to assist the City to formulate a
policy agenda, identify funding opportunities, and guide the City through the
State and Federal appropriations cycles. The services allow the City to have a                 Cost Center Summary:
constant, on-site presence in Annapolis and Capitol Hill. The following chart
illustrates the funds expended on lobbying services and the total dollars secured                                              Actual      Adopted        Est. Act.     Adopted
from the Federal and State governments.                                                                                         FY09          FY10           FY10          FY11
                                                                                               Total Expenditures            165,687        191,600       174,205        181,850
   Fiscal        Lobbying       Federal Funding      State Funding
                                                                                               Total Revenues                     N/A            N/A           N/A            N/A
    Year       Expenditures    Pending/Received    Pending/Received
  FY 2005            $123,000           $1,660,000          $1,500,000
                                                                                               Objectives:
  FY 2006            $125,000           $4,000,000          $1,750,000
  FY 2007            $135,000                   $0            $100,000                                 Improve customer service and employee effectiveness through
  FY 2008            $147,000                   $0                  $0                                 increased delegation and sharing of decision-making throughout the
  FY 2009             $30,000             $825,000            $100,000                                 organization
  FY 2010            $120,000           $1,500,000            $120,000                                 Assist work groups seeking performance and morale improvements by
   Total:            $680,000           $7,985,000          $3,570,000                                 collaborating with managers and work teams through organizational
                                                                                                       development interventions that create meaningful results for team
  Total State and Federal Funds Pending/Received:         $11,555,000
                                                                                                       members and team leaders
                                                                                                       Support the leadership development of all employees, and particularly
                                                                                                       of Department Heads and Division Chiefs, to improve their contributions
                                                                                                       to their work teams
                                                                                                       Support the strategic planning efforts of the Senior Staff to improve their
                                                                                                       effectiveness as a team
                                                                                                       Improve the alignment between strategic planning and operations
                                                                                                       Citywide, at the department level, and at the individual employee level
                                                                                                       by supporting the development of strategic plans, work plans and
                                                                                                       employee development plans
                                                                                                       Support the quality of the Human Resources Department’s orientation
                                                                                                       program for new employees by presenting useful High Performance
                                                                                                       Organization (HPO) training
                                                                                                       Support individual and team development efforts. Coordinate the work
                                                                                                       of the interdepartmental team responsible for the TUNE UP Program to
                                                                                                       plan, design and produce an on-site conference for all Rockville
                                                                                                       employees, and provide customized department- or division-specific
                                                                                                       programs to work groups throughout the organization




                                                                                      7 - 10
                                                   Department of the City Manager
                                                                   Division: Executive Office

Performance Measures:                                                                            Regular Positions:

                                        Actual      Target    Est. Act.     Target                                                               Adopted     Adopted       Adopted
                                                                                                  Position Title
                                         FY09        FY10        FY10        FY11                                                                   FY09        FY10          FY11
    Increase the percent of                                                                       Organizational Development Manager                  1.0         1.0           1.0
    employees “generally                  186 /       186 /       186 /       213 /               Cost Center Total                                   1.0         1.0           1.0
    consulted” or “fully involved” in       355         355         355         355
    decisions relating to their work    or 52%      or 52%      or 52%      or 60%
    to 60%*                                                                                      Supplemental Information:

    Receive value ratings                                                                        The Organizational Development (OD) function seeks to continually improve the
    averaging 4 or higher on a 5-                                                                City’s performance and culture via professional development, change
    point scale from participant                                                                 management, performance improvement and customer-centered service
                                           N/A            4           4           4
    evaluations following a                                                                      delivery. OD responsibilities include:
    collaboration, intervention, or
    coaching engagement                                                                          Strategic Planning & Strategic Management: The Mayor and Council’s Vision is
    Document an increase in                                                                      incorporated into operating plans through the facilitation of business meetings
    leadership scores for at least                                                               and retreats with strategic methodologies. Strategic management systems
                                                     2 / 10      2 / 10      5 / 25              incorporate meaningful performance measures, action plans, and methods for
    20% of participants using the          N/A
                                                    or 20%      or 20%      or 20%               tracking, evaluating and reporting progress.
    Leadership Practices Inventory
    evaluation tool
                                                                                                 Change Management: Executive champions and managers are counseled on
    Receive feedback ratings                                                                     techniques for leading and managing change. Strategies are developed for
    averaging 4 or higher on a 5-                                                                communication, resistance management, coaching, training, accountability and
    point scale from new employee                                                                rewards to reinforce adoption of the necessary or desired change.
    orientation program participant        N/A            4           4           4
    evaluations regarding HPO                                                                    Internal Management Consulting: Senior staff and client departments dealing
    elements of the training                                                                     with performance challenges (these might relate to team culture, management
    program                                                                                      policies and practices, or day-to-day business processes) are provided with an
                                                                                                 assessment, support in joint action planning, coaching, facilitation, progress
    Receive value ratings                                                                        evaluation and follow-up to strengthen the sustainability of improvements.
    averaging 4 or higher on a 5-
                                           N/A            4           4           4
    point scale from TUNE UP                                                                     Leadership Development: 360-degree surveys are administered for senior
    Program participants                                                                         managers to solicit feedback and inform the creation of development plans to
*      The City conducts an employee survey. An employee survey was conducted in FY08            cultivate leadership through practice, education, and coaching. Supervisory
       and the next survey will take place in FY11.                                              Skills training is offered to employees at all levels of the organization to promote
                                                                                                 improved leadership and management skills and support succession planning.

                                                                                                 Mayor and Council Goal Setting: The Mayor and Council receive professional
                                                                                                 facilitation and strategic planning support in developing the Vision for the City of
                                                                                                 Rockville.




                                                                                        7 - 11
                                                Department of the City Manager
                                                                 Division: Executive Office

Internal Survey: A biennial employee survey is conducted to gather data on
employees’ perceptions. Results of the survey are analyzed and action plans are
                                                                                                    Cost Center: Rockville Economic Development, Inc.
developed throughout the organization to promote management practices and                                                 (REDI)
performance measures that support continuous improvement of the
organization’s culture.                                                                        Cost Center Summary:

                                                                                                                                   Actual        Adopted       Est. Act.    Adopted
                                                                                                                                    FY09            FY10          FY10         FY11
                                                                                               Total Expenditures*               493,825         517,500       517,500       530,120
                                                                                               Total Revenues                         N/A            N/A            N/A           N/A
                                                                                               *      REDI was transferred from Non-Departmental to the Department of the City Manager
                                                                                                      for FY11. FY09 and FY10 expenditures are included in the total Non-Departmental
                                                                                                      General Fund Expenditures for Outside Agencies found in the summary table on pg.
                                                                                                      15-1, but are shown here for comparison purposes.

                                                                                               Objectives:

                                                                                                          Support the Rockville and the Shady Grove Innovation Centers and the
                                                                                                          Women’s Business Center
                                                                                                          Facilitate business-to-business connections through Rockville
                                                                                                          Technology and Large Company Database, publish regular email
                                                                                                          newsletter, and promote technology transfer from area laboratories
                                                                                                          Sponsor the StartRight! Business Plan Competition
                                                                                                          Sponsor and organize a regional postdoc conference
                                                                                                          Organize and celebrate Rockville “Business Appreciation Week”
                                                                                                          Advertise Rockville as a great place for business
           2009 Supervisory Skills Program Graduate Recognition
                                                                                               Workload Measures:
In the photo above, Organizational Development Manager Michelle Poché
Flaherty (left) and City Manager Scott Ullery (middle) present a Supervisory Skills                                                   Actual      Estimate     Est. Act.   Estimate
Certificate to Stockroom Inventory Services Clerk Kelvin Budd (right). Kelvin was                                                      FY09           FY10        FY10         FY11
one of the 2009 graduates of Rockville's annual Supervisory Skills Program, in                     Number of Innovation
which employees attend 40 hours of instruction over the course of 10 months to                                                              0              2          0            2
                                                                                                   Center tenant graduates
develop their leadership skills. This Organizational Development program is
designed to increase the performance of current supervisors and their teams. It                    Innovation Center tenant
also supports succession planning by involving employees who aspire to become                                                          85%.           95%          95%         95%
                                                                                                   occupancy rate
supervisors in the future. The curriculum covers administrative supervisory
responsibilities like project management, performance evaluation, discipline,                      Number of Innovate
                                                                                                                                         N/A          N/A*         N/A*            6
workplace safety and budget management as well as leadership skills like                           Program graduates
communication, motivation, team building and change management.
                                                                                                   Number of StartRight!
                                                                                                                                            40         50            53           50
                                                                                                   competitors
                                                                                      7 - 12
                                                     Department of the City Manager
                                                                      Division: Executive Office

                                         Actual    Estimate    Est. Act.     Estimate
                                          FY09         FY10       FY10           FY11
    Number of new StartRight!
                                              0           3             1           0
    award sponsors

    Number of ads placed                    39          40             51         40

    Number of cooperative
                                              1           1             1           1
    marketing campaigns

    Number of business visits              104          80             88         80
                                                                                                   www.RockvilleREDI.org
    Number of visitors                      41          40             45         40

    Number of postdoc
                                           475         400           400         400
    conference participants

    Number of updates to                      1           1                         1
                                                               1 (partial)
    company database                       (all)       (all)                     (all)

    Number of newsletters                   14          12             12         12
*      Innovate Program began in FY10.

Supplemental Information:

Rockville Economic Development, Inc. (REDI) was established by the City as a
public-private partnership to deliver the City’s economic development services.
REDI’s mission is to assure the City’s future economic vitality. REDI strengthens
Rockville’s    economy       by    supporting      knowledge-based      industries,
entrepreneurship and the development of assets that capitalize on local
resources and align with national priorities to spur business growth.

In FY10, REDI completed a Women’s Business Center (WBC) study and
delivered 7 seminars. In FY11, REDI plans to establish an Interim Women’s
Business Center.




                                                                                         7 - 13
                                                  Department of the City Manager
                                               Division: Communication and Public Information

Division: Communication and Public Information

                                   Actual      Adopted        Est. Act.     Adopted                                                   Actual      Adopted        Est. Act.     Adopted
                                    FY09          FY10           FY10          FY11                                                    FY09          FY10           FY10          FY11
Division Expenditures                                                                             Source of
by Cost Center                                                                                    Division Funds
                                                                                                  Cable Operating Grant **
Public Information Office        347,150       460,200       452,381        388,960                                                      N/A            N/A           N/A        71,040
                                                                                                    (110)
Web Site and Intranet            153,616       158,400       157,820        167,130
                                                                                                  Cable Capital Grants
Cable Television*                192,149       403,500       405,255        422,610                                                 362,909       272,332        406,333       408,800
                                                                                                    (350)
Cable TV Equipment
                                  53,808       501,900       501,900        408,800                 Subtotal                      $362,909       $272,332      $406,333       $479,840
  (350)
                                                                                                  Fund Contribution
Graphics and Printing           852,970        886,600       889,958         894,200
                                                                                                  General Fund (110)             1,545,885  1,908,700          1,905,414      1,801,860
Division Total               $1,599,693     $2,410,600    $2,407,314      $2,281,700
                                                                                                  Special Activities (350)        (309,101)   229,568             95,567              0
                                   Actual      Adopted        Est. Act.     Adopted                 Subtotal                    $1,236,784 $2,138,268         $2,000,981     $1,801,860
                                    FY09          FY10           FY10          FY11               Division Total                $1,599,693 $2,410,600         $2,407,314     $2,281,700
Division Expenditures
by Type
Salary and Wages                839,218      1,063,300     1,066,616       1,073,080                                                  Actual      Adopted        Est. Act.     Adopted
Benefits                        198,988        229,800       245,441         303,790                                                   FY09          FY10           FY10          FY11
Overtime                          1,471          2,700         2,700           2,700              Staffing Summary
  Personnel Subtotal         $1,039,677     $1,295,800    $1,314,757      $1,379,570              by Cost Center (FTEs)
Contractual Services                                                                              Regular
                                405,268        505,600       480,857         388,530
Commodities                                                                                       Public Information Office              3.0            3.0           3.0            3.0
                                 93,700        105,500       104,989         103,000
Capital Outlays                                                                                   Web Site and Intranet                  2.0            2.0           2.0            2.0
                                 61,048        503,700       506,711         410,600
Other                                                                                             Cable Television                       4.5            4.5           4.5            4.5
                                      0              0             0               0
                                                                                                  Graphics and Printing                  6.0            6.0           6.0            6.0
  Operating Subtotal          $560,016      $1,114,800    $1,092,557        $902,130
                                                                                                    Regular Subtotal                    15.5           15.5          15.5           15.5
Division Total               $1,599,693     $2,410,600    $2,407,314      $2,281,700
                                                                                                  Temporary
*   In mid-FY09 the Cable Television cost center was moved from the Department of
    Information and Technology into the City Manager’s Office under the Public                    Cable Television                       0.5            0.3           0.4            0.3
    Information and Communication Division; therefore the Actual FY09 figures above                 Temporary Subtotal                   0.5            0.3           0.4            0.3
    capture approximately five months of expenditures. The remaining FY09 expenditures
                                                                                                  Division Total                        16.0           15.8          15.9           15.8
    can be seen in the Department of Information and Technology on pg. 11-2.
                                                                                                  **   The Cable Operating Grant revenue was moved from the Department of Information
                                                                                                       and Technology into the Cable Television cost center for FY11 to more accurately
                                                                                                       reflect the purpose of that grant.




                                                                                         7 - 14
                                               Department of the City Manager
                                            Division: Communication and Public Information

Division: Communication and Public Information                                                            Cost Center: Public Information Office
Division Purpose:                                                                           Cost Center Summary:
The purpose of the Communication and Public Information Division is to increase
                                                                                                                           Actual      Adopted       Est. Act.    Adopted
resident and employee understanding, awareness of, and participation in City
                                                                                                                            FY09          FY10          FY10         FY11
government programs, projects, and services. The Division accomplishes this
through partnering with other City departments to coordinate a strategic                    Total Expenditures            347,150      460,200       452,381       388,960
approach to communication through City publications, its website, marketing                 Total Revenues                    N/A           N/A           N/A           N/A
efforts, external media, direct mail, the Rockville Reports newsletter, social
media, electronic newsletters, Rockville Channel 11, video on demand, and other
efforts. The Division projects a consistent, professional image that facilitates            Objectives:
awareness and use of City programs, projects, events and services, and in turn
generates higher participation and revenue. The Division also serves as the                         Increase positive media coverage of Rockville to better highlight City
primary contact to the media for regular and crisis communication on behalf of                      services and Mayor and Council priorities to residents, businesses and
the City.                                                                                           visitors
                                                                                                    Lead the development and implementation of a community branding
Significant Changes:
                                                                                                    strategy
Adopted FY10 to Estimated Actual FY10                                                               Enhance the consistency and quality of all public information from the
Personnel expenditures increased by $19,000 due to increases in benefit costs.                      City and ensure the appearance and content of all public information
Contractual services expenditures decreased by a total of $24,700 to offset                         materials support the City’s branding strategy
decreased revenue projections during FY10.
                                                                                                    Produce consistent messages among all of Rockville’s internal media
                                                                                                    (website, television, Rockville Reports, electronic and social media) in
Estimated Actual FY10 to Adopted FY11
                                                                                                    order to more effectively communicate with our citizens and all other
Personnel expenditures increased by $64,800 due to increases in benefit costs.                      audiences
Contractual services expenditures decreased by $92,300 mainly due to the
removal of $75,000 for a one-time branding study, the transfer of $9,600 in                         Expand reliance on web and electronic communication for more efficient
outside printing costs to responsible departments, and the removal of $6,400 in                     and effective accessibility to our residents, businesses and visitors
purchase orders that carried over from FY09. Capital outlay expenditures are
expected to decrease by a total of $96,100 due to a planned decrease in                             Develop communication materials that are culturally and linguistically
expenditures in the Cable TV Equipment cost center.                                                 accessible to our residents
                                                                                                    Produce excellent internal communication products for City employees


                                                                                            Performance Measures:
                                                                                                                              Actual       Target     Est. Act.      Target
                                                                                                                               FY09         FY10         FY10         FY11
                                                                                             Ensure 100% of news
                                                                                                                                         125 / 125   170 / 170    150 / 150
                                                                                             releases support the Mayor          N/A
                                                                                                                                          or 100%     or 100%      or 100%
                                                                                             and Council Vision


                                                                                   7 - 15
                                                   Department of the City Manager
                                                 Division: Communication and Public Information

                                       Actual      Target     Est. Act.       Target             a close look at our current communication and make decisions about which hard
                                        FY09        FY10         FY10          FY11              copy items can be converted into web communication.
    Maintain media coverage of
    at least 100 positive stories         N/A          100          171          100             This Division will continue to consult with the City’s revenue producing activity
    about the City per year                                                                      centers to increase attendance and participation through cross-marketing
    Increase number of email                                                                     campaigns using all components of the City’s Communication and Public
    addresses for electronic                                      3,500        3,850             Information Division.
                                          N/A        +10%
    messaging by 10% each                                      or +10%      or +10%
    year                                                                                         The Communication and Public Information Division will partner with the
                                                                                                 Environmental Management Division to reduce the City’s use of paper and
    Achieve translation of a                                                                     postage. Criteria will be developed that will suggest ways for City departments to
    minimum of one article per                     10 / 10       7 / 10      10 / 10             reduce paper usage. This will include fewer mailed materials, encouraging two
                                          N/A
    edition of Rockville Reports                  or 100%       or 70%      or 100%              sided copies, re-evaluating annual mailings, and converting as much
    into another language                                                                        communication to the website and electronic newsletters as possible.
    Maintain rate of posting
    content to social media                      248 / 248    248 / 248    247 / 247
    outlets once each business
                                          N/A
                                                  or 100%      or 100%      or 100%                              Cost Center: Website and Intranet
    day
    Increase employee rating of                                                                  Cost Center Summary:
                                     216 / 287   216 / 287    216 / 287    244 / 287
    “good” or “excellent” for City
                                       or 75%      or 75%       or 75%       or 85%                                              Actual      Adopted       Est. Act.     Adopted
    Insider to 85%*
*      The City conducts an employee survey. An employee survey was conducted in FY08                                             FY09          FY10          FY10          FY11
       and the next survey will take place in FY11.                                              Total Expenditures             153,616       158,400       157,820       167,130
                                                                                                 Total Revenues                     N/A           N/A           N/A           N/A
Regular Positions:

                                                  Adopted     Adopted                            Objectives:
                                                                           Adopted
    Position Title                                   FY09        FY10         FY11
                                                                                                          Provide     a   complete,    accurate,     and   up-to-date    Website
    Communication Manager                               1.0         1.0         1.0                       (www.rockvillemd.gov) to ensure 24/7 access to Rockville City
    Public Information Specialist                       2.0         2.0         2.0                       Government, to effectively market and communicate news, City events
    Cost Center Total                                   3.0         3.0         3.0                       and major initiatives, and to support and enhance e-government
                                                                                                          services
Supplemental Information:                                                                                 Provide targeted opportunities for citizen feedback through the use of
                                                                                                          electronic surveys and comment forms
The Public Information Specialists use a project management approach to                                   Provide and support the City's intranet site, and other web-related
strategically leverage Division-wide resources across television, print, web,                             services for employees in order to enhance access to information
electronic and social media, as well as the external media. They develop                                  throughout the organization
messages for use in all media to ensure consistency, efficiency and
effectiveness.

Rockville Reports remains our residents’ most important source for information
about the City, but web based media are becoming increasingly important. Over
the next several fiscal years, this Division will concentrate efforts on increasing
awareness of the City’s website. As part of this refocusing, the Division will take
                                                                                        7 - 16
                                                   Department of the City Manager
                                                Division: Communication and Public Information

Performance Measures:
                                                                                                                          Cost Center: Cable Television
                                     Actual        Target      Est. Act.        Target
                                      FY09          FY10          FY10           FY11               Cost Center Summary:

 Achieve 4,500 average                                                                                                                 Actual         Adopted      Est. Act.    Adopted
 daily visits to Rockville's          4,500         5,000          5,000         4,500                                                  FY09             FY10         FY10         FY11
 website *                                                                                          Total Expenditures                192,149         403,500      405,255       422,610
 Increase the percentage                                                                            Total Revenues*                       N/A             N/A           N/A       71,040
 of resident satisfaction                                                                           *      This revenue source was moved from the Department of Information and Technology
                                       75%            75%           75%            80%
 with the City’s website to                                                                                to the Cable Television cost center for FY11.
 80%**
 Maintain the rate of                                                                               Objectives:
 changes to website
                                                248 / 248      248 / 248     247 / 247
 homepage content to at                 N/A                                                                    Produce live and replayed television coverage of all Mayor and Council
                                                 or 100%        or 100%       or 100%
 least once each business                                                                                      meetings and other public meetings to enhance the public awareness of
 day                                                                                                           and participation in the Rockville City Government
 Increase the number of                                                                                        Develop and produce high-quality, award-winning television programs
 electronic surveys and                              34 or          34 or         38 or                        that are culturally and linguistically suited for Rockville’s increasingly
                                         31
 comment forms by 12% to                            +10%           +10%          +12%
                                                                                                               diverse population
 38
                                                                                                               Produce television programs to ensure a consistent message in
*      Staff will utilize a new and more accurate web tracking method beginning in FY11.
**     The City conducts a Citizen Survey every other year. A Citizen Survey was
                                                                                                               alignment with the Mayor and Council strategic priorities
       conducted in FY09 and the next survey will take place in FY11.                                          Respond efficiently to internal and external customer requests to
                                                                                                               increase awareness and understanding of, and participation in, City
Regular Positions:                                                                                             government programs, projects and services
                                                                                                               Become more interactive and accessible to the Rockville 11 viewing
                                               Adopted        Adopted         Adopted
 Position Title                                                                                                audience by adopting the most current television technology
                                                  FY09           FY10            FY11
 Web Administrator                                  1.0            1.0             1.0
                                                                                                    Performance Measures:
 Web Assistant                                      1.0            1.0             1.0
 Cost Center Total                                  2.0            2.0             2.0                                                      Actual        Target    Est. Act.     Target
                                                                                                                                             FY09          FY10        FY10        FY11
                                                                                                        Increase percent of citizen
                                                                                                        survey respondents who                  35%         35%          35%         50%
                                                                                                        watch Rockville 11 to 50%*
                                                                                                        Produce 100% of programs
                                                                                                                                           30 / 30       35 / 35      35 / 35     45 / 45
                                                                                                        in alignment with Mayor and
                                                                                                                                          or 100%       or 100%      or 100%     or 100%
                                                                                                        Council Vision




                                                                                           7 - 17
                                                   Department of the City Manager
                                                 Division: Communication and Public Information

                                        Actual      Target     Est. Act.      Target             Workload Measures:
                                         FY09        FY10         FY10         FY11
    Increase internal employee                                                                                                           Actual     Estimate      Est. Act.     Estimate
    satisfaction rating of                                                                                                                FY09          FY10         FY10           FY11
                                     161 / 217    161 / 217   161 / 217    174 / 217
    assistance in developing                                                                         Number of meetings
                                      or 74%       or 74%      or 74%        or 80%
    Cable TV programming and                                                                         televised:
    announcements to 80%**                                                                                 Mayor and Council                  42            44            36           45
    Increase citizen survey                                                                                Planning Commission                23            23            23           23
    customer satisfaction rating          27%          27%         27%          45%                        Historic District
    to 45%*                                                                                                Comm./Other                        12             0             6           17
    Increase the number of                                                                           Number of programs
    annual “hits” on Video On                                                                        produced and aired*:
                                        10,000        6,000      23,000      28,000
    Demand programs on the                                                                               News Program                         20           20            10            12
    City’s website to 28,000                                                                             Interview
    Maintain 100% competency                                                                             Programs/Specials                    73            66            45           50
    in advanced non-linear                2/5          5/5         5/5          5/5
                                                                                                     Number of programs
    editing for all Rockville 11       or 40%      or 100%     or 100%      or 100%
                                                                                                     produced using remote                     3             7             7           10
    staff members
                                                                                                     production equipment
    Increase number of foreign
                                             5            7            7           8             *      Rockville 11 made a programming decision in FY10 to move to a once per month
    language programs to 8
    Reduce the average number                                                                           hour-long newscast to provide more in-depth coverage of city events and programs
                                                                                                        instead of a twice per month half-hour long newscast, thus reducing the total number
    of hours required to produce
                                            58           40          40           36                    of programs produced and aired even though the hours of programming remained the
    one hour of original                                                                                same.
    programming to 36
    Maintain the number of                                                                       Regular Positions:
    hours of original
                                            40           50          50           50
    programming at 50,                                                                                                                                Adopted       Adopted       Adopted
                                                                                                     Position Title
    excluding meeting coverage                                                                                                                          FY09*          FY10          FY11
*      The City conducts a citizen survey every other year. A survey was conducted in                Cable Television Production Manager**                0.0            1.0           1.0
       FY09. The next one will be conducted in FY11.
**     The City conducts an employee survey. An employee survey was conducted in FY08                Television and Telecommunication Mgr.                1.0            0.0           0.0
       and the next survey will take place in FY11.                                                  Television Writer / Producer**                       1.0            0.0           0.0
                                                                                                     Cable TV Production Specialist II                    2.0            2.0           2.0
                                                                                                     Associate Producer / Director                        1.0            1.0           1.0
                                                                                                     Video Technician                                     0.5            0.5           0.5
                                                                                                     Cost Center Total                                    5.5            4.5           4.5
                                                                                                 *      FY09 positions were adopted as part of the Department of Information and
                                                                                                        Technology, but are shown here for comparison purposes.
                                                                                                 **     In FY09 the Television Writer/Producer position was upgraded to Cable Television
                                                                                                        Production Manager as part of the reorganization to bring the Cable Television cost
                                                                                                        center under the Communication and Public Information Division.



                                                                                        7 - 18
                                               Department of the City Manager
                                            Division: Communication and Public Information

Supplemental Information:                                                                    Rockville 11 National Awards for Excellence in Government Television
                                                                                             Programming 2008 and 2009
From live cablecasts of Mayor and Council meetings to in-depth award-winning
                                                                                             2008 3CMA Savvy Awards:
documentaries, Rockville 11 provides information for Rockville residents and
visitors on Rockville City government. Rockville 11 can be found on channel 11                      First Place: Rebirth of a Town Center
on Comcast cable, Verizon FIOS and RCN. Rockville 11 is also streamed live                          Silver Circle Award, Second Place: Every 15 Minutes
24/7 at rockvillemd.gov/rockville11 with archived programs available to be viewed                   Award of Excellence, Third Place: Rockville’s Pike Public Service
at any time, on demand. Every month Rockville 11 counts down the top 11                             Announcement
stories happening in the City of Rockville on the award-winning news show,                   2008 National Association of Telecommunications Officers and Advisors (NATOA)
Rockville’s 11. These Rockville 11 “in the field” stories reveal how the City                Awards:
serves the residents of Rockville. Also each month, Rockville 11 produces a                          Public Safety: Every Fifteen Minutes 2007
documentary-style program, which can focus on anything from Rockville’s                              Election Coverage: 2007 Election Night Live
neighborhoods, a historical element of the City or a new program or project in a
City department.                                                                             2009 3CMA Savvy Awards:
                                                                                                    First Place News Programming: Rockville’s 11 Newscast
In addition to Rockville 11's award-winning original programming, Rockville 11 is                   Second Place One-Time Special Programming: After the Storm
focused on producing more remote "live" productions in the City for FY11 by                         Third Place One-Time Special Programming: Where We Live: Lincoln
making use of V-Brick technology and the County's Mobile Production Vehicle.                        Park
This technology, which is already available to the channel at no cost, will allow                   Third Place Award of Excellence: Trash Talk
Rockville 11 to bring residents more live, informative and entertaining                      2009 Honorable Mention NATOA Awards:
programming about the City of Rockville. Remote productions include live Mayor
                                                                                                    Visual Arts: Rockville Living/Serving
and Council meetings, Hometown Holidays coverage and other special events
                                                                                                    Excellence in Government Programming: Rockville 11
and performances.
                                                                                                    Public Safety: Every 15 Minutes 2008
Programs On Rockville 11:                                                                           Documentary/Profile: Where We Live: Lincoln Park
       Rockville’s 11 (countdown newscast of the top 11 stories in Rockville)                2010 Montgomery Preservation Award:
       Where We Live (series profiling Rockville’s diverse neighborhoods)                           A Pair of Jacks: documentary of Rockville Architecture
       Q & A: A Guide to City Hall (guide to finding answers in the City)
       Nature Center TV (a nature show produced by youth in the City’s
       summer camp recreation program)
       I Bike Rockville (learn about how to get around Rockville on two wheels)
       Hometown Holidays Rewind (recap show about Rockville’s biggest
       event of the year)
       A Pair of Jacks (documentary about two Rockville architects)
       Live cablecast of Mayor and Council, Planning Commission, Historic
       District Commission, Board of Appeals meetings




                                                                                                Rockville 11 interviews Maryland Governor Martin O’Malley during the
                                                                                                                   Rockville Capital for a Day Event
                                                                                    7 - 19
                                                       Department of the City Manager
                                                    Division: Communication and Public Information

           Cost Center: Cable TV Equipment (Fund 350)                                                    Supplemental Information:

Cost Center Summary:                                                                                     These funds are specifically designated for the replacement of aged and worn
                                                                                                         television production equipment, the purchase of new equipment and the
                                                                                                         migration to a digital environment for the City’s municipal television station.
                                      Actual       Adopted         Est. Act.      Adopted
                                                                                                         Funding is provided through grants from the cable franchise agreements with
                                       FY09           FY10            FY10           FY11
                                                                                                         Comcast, Starpower/RCN, and Verizon. The 15-year Comcast agreement
Total Expenditures                    53,808        501,900         501,900        408,800               provides a funding level of $20,000 per year adjusted annually by the consumer
Total Revenues                      362,909         272,332         406,333        408,800               price index. For the 15-year Starpower/RCN grant, which began in FY01, the
                                                                                                         City receives one-seventh of three percent of the company’s annual gross
                                                                                                         revenues in Montgomery County. In FY09, the City began receiving additional
Objectives:                                                                                              capital grant funding from Verizon through a new 15-year franchise agreement.
                                                                                                         The City receives one-seventh of three percent of Verizon’s annual gross
            Provide industry-standard television technology for Rockville 11 to                          revenues in Montgomery County from cable services.
            ensure the highest quality, transparent programming available for
            Rockville residents, and to increase staff efficiency
Performance Measures:

                                        Actual         Target      Est. Act.         Target
                                         FY09           FY10          FY10            FY11
    Upgrade at least 20% of              2 / 10         3 / 10          8 / 10        2 / 10
    equipment per year                  or 20%         or 30%        or 80%*         or 20%
    Increase percentage of
    completed internal video
                                        20 / 25        22 / 25        22 / 25        23 / 25
    requests by at least 4%
                                        or 80%         or 88%         or 88%         or 92%
    (non bulletin board, non-
    dubs)**
*      Rockville 11 is upgrading the majority of its aging television equipment in FY10 using
       Cable TV Equipment funding.
**     With the updated television equipment being purchased in FY10, Rockville 11 can
       better accommodate internal video requests such as meetings, training, and internal
       employee communications.




                                                                                                                     2010 Hometown Holidays and Memorial Day Parade
                                                                                                                 with live Cable Television coverage for the first time in 2010




                                                                                                7 - 20
                                                Department of the City Manager
                                             Division: Communication and Public Information

 Cost Center: Graphics, Printing, Copy and Mail Center                                                                                Actual          Target      Est. Act.           Target
                                                                                                                                       FY09            FY10          FY10              FY11
Cost Center Summary:                                                                             Maintain percent of
                                                                                                 employees rating quality
                                                                                                                                    238 / 279         34 /40        31 / 31           31 / 31
                                                                                                 of finished print/copy
                                Actual      Adopted        Est. Act.      Adopted                                                     or 85%         or 85%        or 100%           or 100%
                                                                                                 products as “good” or
                                 FY09          FY10           FY10           FY11
                                                                                                 “excellent” at 100%* **
Total Expenditures             852,970       886,600        889,958        894,200               Increase percent of
Total Revenues                     N/A            N/A            N/A            N/A              employees rating mail                               38 / 40        28 / 29           29 / 29
                                                                                                                                          N/A
                                                                                                 services as “good” or                               or 95%         or 97%           or 100%
                                                                                                 “excellent” to 100%*
Objectives:                                                                                      Maintain percent of
        Decrease paper usage by City staff through education and awareness                       employees rating their
        in order to cut costs and continue environmentally friendly practices                    customer service
                                                                                                                                                     88 / 93        89 / 93           89 / 93
                                                                                                 experience with this cost                N/A
        Provide timely and efficient completion of all Graphics, Print, and Copy                                                                     or 95%         or 96%            or 96%
                                                                                                 center as “good” or
        Center requests from internal clients                                                    “excellent” at 95% or
        Provide excellent printed and graphic materials that provide                             better*
        communication solutions for use in public information and outreach                      *    Survey ratings obtained from post-job internal customer satisfaction surveys.
                                                                                                **   FY09 Actuals are from the Citywide employee survey.
        Provide timely and cost efficient internal and external mail services to all
        departments by picking up out-going and inter-office mail twice daily,
                                                                                                Regular Positions:
        delivering mail to off site facilities, affixing postage and mailing daily
        Maintain daily delivery of completed graphics, printing and copy center                                                                  Adopted        Adopted          Adopted
        jobs to at least seven City facilities to better serve customer needs                    Position Title
                                                                                                                                                    FY09           FY10             FY11
                                                                                                 Graphics and Printing Supervisor                       1.0            1.0               1.0
Performance Measures:
                                                                                                 Graphics Specialist                                    2.0            2.0               2.0
                                  Actual        Target      Est. Act.       Target               Printing Specialist I                                  1.0            1.0                1.0
                                   FY09          FY10          FY10          FY11
                                                                                                 Printing Specialist II                                 1.0            1.0                1.0
                                                                  2.1           1.9              Copy Center and Mail Specialist                        1.0            1.0                1.0
 Decrease copy paper                  2.5          2.64
                                                              million       million
 consumption throughout           million        million                                         Cost Center Total                                      6.0            6.0                6.0
                                                              sheets        sheets
 City Hall by 10%                 sheets         sheets
                                                             or -16%       or -10%
 Increase percent of
 Graphics, Print and Copy                     565 / 628     519 / 628     565 / 628
                                      N/A
 requests completed on                          or 90%        or 83%        or 90%
 time or early to 90%
 Maintain percent of
 employees rating quality
                                228 / 277       18 / 20       18 / 19       30 / 31
 of graphic design as
                                  or 82%        or 90%        or 95%        or 97%
 “good” or “excellent” at
 95% or better* **
                                                                                       7 - 21
                                       Department of the City Manager
                                        Division: Neighborhood Resources Program

Division: Neighborhood Resources Program
                           Actual    Adopted    Est. Act.    Adopted                                       Actual    Adopted    Est. Act.    Adopted
                            FY09        FY10       FY10         FY11                                        FY09        FY10       FY10         FY11
Division Expenditures                                                           Source of
by Cost Center                                                                  Division Funds
Neighborhood                                                                    Departmental Revenue          0           0           0           0
                         233,290     252,400    244,232      270,160              Subtotal                   $0          $0          $0          $0
  Resources
Human Rights &                                                                  Fund Contribution
                         111,299     122,100    120,632      119,890
  Community Mediation                                                           General Fund (110)       344,589     374,500    364,864      390,050
Division Total          $344,589    $374,500   $364,864     $390,050              Subtotal              $344,589    $374,500   $364,864     $390,050
                                                                                Division Total          $344,589    $374,500   $364,864     $390,050
                           Actual    Adopted    Est. Act.    Adopted
                            FY09        FY10       FY10         FY11
Division Expenditures                                                                                      Actual    Adopted    Est. Act.    Adopted
by Type                                                                                                     FY09        FY10       FY10         FY11
Salary and Wages         248,693     276,400    274,900      278,600            Staffing Summary
Benefits                  66,620      61,900     65,114       91,250            by Cost Center (FTEs)
Overtime                       0           0          0            0            Regular
  Personnel Subtotal    $315,313    $338,300   $340,014     $369,850            Neighborhood
Contractual Services       3,137       8,000        150            0              Resources                   3.0        3.0         3.0         3.0
Commodities               26,139      28,200     24,700       20,200            Human Rights &
                                                                                                              1.0        1.0         1.0         1.0
Capital Outlays                0           0          0            0              Community Mediation
Other                          0           0          0            0              Regular Subtotal            4.0        4.0         4.0         4.0
  Operating Subtotal     $29,276     $36,200    $24,850      $20,200            Temporary
Division Total          $344,589    $374,500   $364,864     $390,050              Temporary Subtotal          0.0        0.0         0.0         0.0
                                                                                Division Total                4.0        4.0         4.0         4.0




                                                                       7 - 22
                                              Department of the City Manager
                                               Division: Neighborhood Resources Program

Division: Neighborhood Resources Program                                                           Cost Center: Neighborhood Resources Program
Division Purpose:                                                                          Cost Center Summary:

The Division informs and engages citizens in order to ensure responsive City                                               Actual      Adopted       Est. Act.     Adopted
services and a high quality of life in neighborhoods. The Division supports                                                 FY09          FY10          FY10          FY11
neighborhood organizations, serves as a liaison between the City and
neighborhoods, facilitates communication between City government and                       Total Expenditures             233,290       252,400       244,232       270,160
residents, provides information and training to cultivate civic leadership, and            Total Revenues                     N/A           N/A           N/A            N/A
supports citizen initiated neighborhood improvement projects. The program also
promotes human rights and helps the City Government respond to the needs of                Objectives:
the diverse population by supporting the Human Rights Commission and the
Asian Pacific-American Task Force, offering consistently fair, objective and                   •    Support neighborhood association leaders by maintaining relationships,
effective mediation services, and providing information and referral services.                      communicating in an effective and accurate way, and responding to
Significant Changes:                                                                                information and service requests
                                                                                               •    Maintain strong relationships and communicate effectively with City staff
Adopted FY10 to Estimated Actual FY10                                                               regarding neighborhood issues, capital improvement projects, and City
Contractual services expenditures decreased by a total of $7,900 to offset                          programs and initiatives
decreased revenue projections during FY10.                                                     •    Coordinate with department staff and the Communication and Public
                                                                                                    Information Division to plan and manage two-way communication with
Estimated Actual FY10 to Adopted FY11                                                               stakeholders on City projects and initiatives in order to empower
Personnel expenditures increased by $29,800 due to increases in benefit costs.                      residents and increase participation in decision-making
                                                                                               •    Support residents, businesses and other customers by anticipating and
                                                                                                    responding to needs and providing resources
                                                                                               •    Provide multiple opportunities and venues to educate residents so that
                                                                                                    they can engage effectively in their community and contribute to the
                                                                                                    City’s hometown character, strong identity and harmony
                                                                                               •    Develop and maintain partnerships with the Montgomery County Latin-
                                                                                                    American Advisory Committee, Faith Works, Korean American
                                                                                                    Association, Chinese Culture and Community Services Center,
                                                                                                    Community Ministries of Rockville, and Montgomery County Office of
                                                                                                    Community Partnerships to create a strategic network of resources that
                                                                                                    benefit Rockville residents




                                                                                  7 - 23
                                              Department of the City Manager
                                              Division: Neighborhood Resources Program

Performance Measures:                                                                                                       Actual        Target      Est. Act.       Target
                                                                                                                             FY09          FY10          FY10          FY11
                                 Actual      Target    Est. Act.     Target
                                  FY09        FY10        FY10        FY11                  Develop partnerships with
                                                                                            a minimum of 6
 Increase the                                                                               community                             2             5             5             6
 number/percent of                                                                          organizations****
 neighborhood leaders
                                 74 / 95     78 / 95     78 / 95     83 / 95            *    The City conducts an internal survey. A survey was conducted in FY08. The next one
 rating the quality of the
                                 or 78%      or 82%      or 82%      or 87%                  will be conducted in FY11.
 program as “excellent” or
 “good” to 87%                                                                          ** The City conducts a citizen survey every other year. A survey was conducted in FY09
                                                                                             and the next survey will take place in FY11.
 Increase the percent of                                                                *** This is a new Performance Measure for FY11.
 internal survey                                                                        **** Community organizations include: Twinbrook Small Business Association, Twinbrook
 respondents rating the                                                                      Elementary School, Meadow Hall Elementary School, Maryvale Elementary School,
 quality of information        137 / 201   137 / 201   137 / 201   149 / 201                 the Montgomery County Business Roundtable for Education, and the Rockville
 sharing between                 or 68%      or 68%      or 68%      or 74%                  Chamber of Commerce.
 neighborhoods and the
 City as “excellent” or                                                                 Workload Measures:
 “good” to 74%*
 Increase the percent of                                                                                                    Actual     Estimate       Est. Act.    Estimate
 citizen survey                                                                                                              FY09          FY10          FY10          FY11
 respondents who "strongly                                                                  Number of residents
 agree" or "agree" that the                                                                 participating in Rockville           14            18           18            20
 City government                   71%         71%         71%         73%                  University
 welcomes citizen                                                                           Number of Good Neighbor
 involvement to 73%**                                                                                                            15            20           21            22
                                                                                            Award winners
 Increase number of
 volunteer hours generated                                                                  Number of City project
 by Neighborhood                    530         550         550         560                 communication
                                                                                                                                 10            13           13            14
 Matching Grants and                                                                        plans contributed to
 other community initiatives
 to 560                                                                                 Regular Positions:
 Achieve a total of 10
 neighborhoods partnering                                                                                                             Adopted        Adopted       Adopted
                                                                                            Position Title
 with the City in                   N/A         N/A         N/A          10                                                              FY09           FY10          FY11
 neighborhood workshops                                                                     Neighborhood Resources Coordinator               3.0           2.0            2.0
 and City Service Fairs***                                                                  Senior Neighborhood Resources
                                                                                                                                            N/A            1.0            1.0
 Maintain 100% of                                                                             Coordinator
 Rockville University                                                                       Cost Center Total                                3.0           3.0            3.0
 participants rating the
                                14 / 14     15 / 15     18 / 18     20 / 20
 program as “excellent”
                               or 100%     or 100%     or 100%     or 100%
 or “good”

                                                                               7 - 24
                                               Department of the City Manager
                                               Division: Neighborhood Resources Program

Supplemental Information:
                                                                                             Cost Center: Human Rights and Community Mediation
Strategic Plan Implementation - Strategic plan initiatives underway and
continuing into FY11 include:                                                               Cost Center Summary:

                                                                                                                                Actual    Adopted           Est. Act.    Adopted
        Update the format and content of the website in three languages and                                                      FY09        FY10              FY10         FY11
        create a more attractive format for the community electronic newsletter.
                                                                                            Total Expenditures                 111,299        122,100       120,632      119,890
        Build additional partnerships between the City and a diverse range of
        community faith, nonprofit and government groups in Montgomery                      Total Revenues                        N/A            N/A             N/A         N/A
        County to extend our outreach to diverse segments of the population.
        Research grants, programs and other opportunities for community                     Objectives:
        enhancement.
                                                                                                     Educate residents and staff about diversity, human rights, civic
FY10 Neighborhood Resources Division Selected Accomplishments                                        responsibilities and conflict resolution strategies in order to promote a
                                                                                                     more harmonious community
       Established a Rockville University Program for high school students in
       order to reach out to and to engage students in City government.                              Develop programs that provide opportunities for residents of all ages
                                                                                                     and backgrounds to engage in social and human rights issues with a
       Engaged the community and Washington Metropolitan Area Transit
       Authority (WMATA) in the development of the Greenway initiatives for                          local and global perspective
       East Rockville.                                                                               Work with City departments to engage and communicate effectively with
                                                                                                     Rockville’s diverse community in order to increase resident participation
       Co-hosted Twinbrook Day in the Park and held service fairs at
       Twinbrook Library and Maryvale Elementary School to bring City staff                          in City activities and decision-making
       into the community to share information, answer questions, and register                       Provide assistance on outreach to diverse populations in support of the
       voters.                                                                                       goals and objectives of the Human Rights Commission and the Asian
       Coordinated with the Department of Recreation and Parks, and Code                             Pacific-American Task Force
       Enforcement to respond to the issue of rodents in Rockcrest Park.                             Visit and develop relationships with Rockville businesses in order to
       Surveyed residents on the quality and effectiveness of Neighborhood                           strengthen the coordination and cooperation between City government
       Resources Division services.                                                                  and the business sector
       Conducted problem solving in neighborhoods including planning for
       future operation of the District Court, addressing resident concerns with            Performance Measures:
       CSX track maintenance, examining pedestrian access to Montgomery
       College, and responding to concerns about a group home.                                                                      Actual        Target     Est. Act.    Target
                                                                                                                                     FY09          FY10         FY10       FY11
       Communicated with neighborhoods about priority topics including the
       construction of the new District Court building, the planning for the                 Increase the number/percent
       Judicial Center Annex, the 2010 Census, new development and                           of formal mediation
       redevelopment projects, and opportunities to submit Capital                           participants who were                   8 / 10       10 / 11      10 / 11    11 / 11
       Improvements Program project requests.                                                “satisfied” or “very satisfied”        or 80%        or 91%       or 91%    or 100%
                                                                                             with the formal mediation
       Helped to coordinate information sharing and community meetings for                   process to 100%
       the Rockville Intermodal Access - Baltimore Road Project.




                                                                                   7 - 25
                                                        Department of the City Manager
                                                         Division: Neighborhood Resources Program

                                             Actual        Target     Est. Act.        Target              Regular Positions:
                                              FY09          FY10         FY10           FY11
    Achieve a minimum of 83% of                                                                                                                         Adopted      Adopted      Adopted
                                                                                                            Position Title
    mediation case participants                                                                                                                            FY09         FY10         FY11
                                                          47 / 60       47 / 60       50 / 60
    who were ”satisfied” or “very               N/A                                                         Human Rights/ Community Mediation
                                                          or 78%        or 78%        or 83%                                                                  1.0          1.0          1.0
    satisfied” with the assistance                                                                            Administrator
    provided by staff
                                                                                                            Cost Center Total                                 1.0          1.0          1.0
    Achieve 97% of Martin Luther
    King Jr. Celebration attendees                      712 / 750     712 / 750     750 / 770
    rating the event “excellent” or             N/A       or 95%        or 95%        or 97%               Supplemental Information:
    “good”
    Maintain at 90% the                                                                                    FY10 Human Rights and Community Mediation Accomplishments
    percentage of residents
    reporting they were “satisfied”                                                                                The Human Rights Commission (HRC) and Asian Pacific-American
                                                N/A       36 / 40       36 / 40       36 / 40                      (APA) Task Force combined efforts to help residents of Asian and
    or “very satisfied” with the
                                                          or 90%        or 90%        or 90%                       Latino backgrounds to understand the importance of voting by adding
    education session on diversity
    and conflict resolution                                                                                        interpreters during the voter registration drives around the City.
    Provide assistance on                                                                                          Supported the Jiaxing delegation visit by arranging for an APA translator
    outreach to diverse                                                                                            at the signing event and reception.
    populations for at least 6 City             N/A              5             5             6                     Coordinated with the HRC to execute the Fourth Annual Human Rights
    projects and initiatives                                                                                       Commission Essay Contest. In an effort to incorporate other forms of
    Increase the number of new                                                                                     expression, the HRC expanded the contest to also include other types
    individuals registered to vote at             50            60            60            70                     of media such as video and art entries. This activity provided the
    Voter Registration Drives to 70                                                                                opportunity for 57 teens to express themselves and exercise leadership
                                                                                                                   by creating entries about important issues that impact their lives, the
Workload Measures:                                                                                                 community, and the nation.
                                                                                                                   As participants in the CENSUS 2010 Committee, increased awareness
                                             Actual     Estimate      Est. Act.     Estimate                       about the census among minority groups in the City.
                                              FY09          FY10         FY10           FY11
    Number of mediation inquiries
                                                160           165           172           175
    received
    Number of mediation cases *                   60            60            75            78
    Number of formal mediations *                  8             8            11            11
*      A mediation case refers to incidences when an individual(s) contacts the City to
       request mediation, staff invites the other parties involved, and attempts to organize a
       formal mediation. In some instances, a mediation case does not result in formal
       mediation (e.g., a problem is resolved prior to formal mediation or one party refuses to
       participate). A subset of the mediation cases result in formal mediation in which all
       parties and two mediators meet to attempt to resolve the problem through mediation.




                                                                                                  7 - 26
          Department of Community Planning and Development Services
                            Department of Community                                                  Department Mission Statement
                            Planning and Development                             The Department of Community Planning and Development Services facilitates
                                     Services                                    and administers the standards and plans of the Rockville community which are
                                                                                 intended to enhance the quality of the built environment, protect the natural
                                                                                 environment and preserve historic resources.
                                 CPDS Executive

                                                                                                               Expenditures History
                                                                                 $9,000,000
              Planning and Zoning               Long Range Planning and
                                                    Implementation               $7,500,000

                                                                                 $6,000,000

                                                                                 $4,500,000
                  Housing                          Inspection Services
                                                                                 $3,000,000

                                                                                 $1,500,000

                                 Staffing Trend                                          $0
       60.0                                                                                     Actual        Actual     Actual     Est. Act.     Adopted
                                        Total                                                    FY07          FY08      FY09        FY10          FY11

       45.0
                                      Regular
                                                                                                              Use of Funds
FTEs




       30.0
                                                                                                    Planning and
                                                                                                       Zoning
       15.0                                                                                             25%
                                         Temporary
        0.0
                Actual      Actual     Actual        Est. Act.   Adopted                                                             Long Range
                 FY07        FY08      FY09           FY10        FY11                                                                Planning
                                                                                              Housing                                   12%
                                                                                               25%



                                                                                                                                     Inspection
                                                                                                                                      Services
                                                                                                  Executive                             33%
                                                                                                     5%




                                                                           8-1
          Department of Community Planning and Development Services
                                                                        Department Summary
                                                                                                                          Actual        Adopted     Est. Act.     Adopted
Department Summary                                                                          Source of Dept. Funds          FY09            FY10        FY10          FY11
                                                                                            Building Permits (110)      833,994       1,100,000     680,840       800,000
                                  Actual      Adopted       Est. Act.     Adopted           CDBG Grant (360) *          292,501         608,000     305,000       614,348
                                   FY09          FY10          FY10          FY11           Citations/
                                                                                                                            200              0            0             0
Dept. Expenditures                                                                           Investigations (110)
by Division                                                                                 Fire Code Review (110)       57,367        100,000       50,000        75,000
Executive                       220,613       209,500       206,650       220,195           Fire Protection
                                                                                                                        147,730        200,000       70,000       150,000
Long Range Planning                                                                          Permit (110)
 and Implementation *         1,327,563       571,100      602,830         584,470          Grants (110)                 11,356              0       10,750             0
Planning and Zoning             926,093     1,133,900    1,086,420       1,172,710          Misc. Revenue (370) *         1,694             N/A          N/A           N/A
Inspection Services           1,418,188     1,538,700    1,485,970       1,584,760          Non-Business
                                                                                                                        135,202        110,000      110,000       110,000
Housing**                       978,672     1,175,900      852,340       1,155,978           Licenses (110)
Department Total             $4,871,129    $4,629,100   $4,234,210      $4,718,113          Property Tax (370) *      1,020,711             N/A          N/A           N/A
                                                                                            Zoning/Subdivision
                                                                                                                         61,361         50,000       69,470        50,000
                                                                                             Fees (110)
                                  Actual      Adopted       Est. Act.     Adopted             Subtotal               $2,562,116      $2,168,000   $1,296,060    $1,799,348
                                   FY09          FY10          FY10          FY11           Fund Contribution
Division Expenditures                                                                       General Fund (110)        2,572,166       2,461,100    2,938,150     2,918,765
by Type                                                                                     Twn Cnter Mng.
                                                                                                                       (263,153)            N/A          N/A           N/A
Salary and Wages              2,874,267     3,176,800    3,100,450       3,148,430           Dist. (370) *
Benefits                        637,926       655,100      698,985         839,230            Subtotal               $2,309,013      $2,461,100   $2,938,150    $2,918,765
Overtime                          6,329         3,400        4,000           3,400          Department Total         $4,871,129      $4,629,100   $4,234,210    $4,718,113
  Personnel Subtotal         $3,518,522    $3,835,300   $3,803,435      $3,991,060
                                                                                                                          Actual       Adopted      Est. Act.     Adopted
Contractual Services          1,315,017       769,600      406,110         603,273
                                                                                                                            FY09          FY10         FY10          FY11
Commodities                      37,590        24,200       24,665          25,230
                                                                                            Staffing Summary by Cost Center (FTEs)
Capital Outlays                       0             0            0             850
                                                                                            Regular
Other                                 0             0            0          97,700
                                                                                            Executive                         1.0           1.0          1.0           1.0
  Operating Subtotal         $1,352,607      $793,800     $430,775       $727,053
                                                                                            Long Range Planning
Department Total             $4,871,129    $4,629,100   $4,234,210      $4,718,113                                            6.0           5.8          5.8           5.8
                                                                                             and Implementation *
                                                                                            Planning and Zoning              10.6          11.8         11.8          10.8
*    Beginning in FY10 the Town Center Management District cost center was moved to         Inspection Services              19.0          18.0         18.0          18.0
     the Department of Recreation and Parks’ Facilities Division for the long-term
     management of the contract.
                                                                                            Housing **                        7.0           6.0          6.0           5.0
**   The Division of Management & Support was renamed to the Division of Housing            Regular Subtotal                 43.6          42.6         42.6          40.6
     starting in FY11.                                                                      Temporary
                                                                                            Executive                         0.1           0.0          0.0           0.0
                                                                                            Long Range Planning
                                                                                                                              0.4           0.3          0.3           0.0
                                                                                             and Implementation *
                                                                                            Housing **                        0.4           0.2          0.2           0.1
                                                                                              Temporary Subtotal              0.9           0.5          0.5           0.1
                                                                                            Department Total                 44.5          43.1         43.1          40.7
                                                                                      8-2
          Department of Community Planning and Development Services
                                                                     Department Summary

                                                                                             The Inspection Services Division administers the building and life safety codes
Department Summary                                                                           to insure safe structures and occupancy for residential and commercial
                                                                                             construction. The Plan Review and Permitting cost center processes all permit
Department Overview:
                                                                                             applications and reviews construction plans to insure compliance with technical
                                                                                             codes. Contractor licenses and annual renewals are also maintained. The
The Department of Community Planning and Development Services (CPDS)
                                                                                             Inspections cost center enforces the regulations by inspecting each project to
oversees property development and construction activities to ensure the vision
                                                                                             insure that construction, design and workmanship are compliant with approved
for the City is achieved. The community expresses this vision through the City’s
                                                                                             plans. Enforcement of the new building code, which includes significant green
Master Plan, the newly adopted Zoning Ordinance and other development
                                                                                             building requirements, will be the focus of this division for FY11.
regulations. The Department consists of five Divisions: Executive, Long Range
Planning and Implementation, Planning and Zoning, Inspection Services and                    The Housing Division administers the City’s housing programs and includes the
Housing. The role and perspective of each division is somewhat different in terms            administrative and records management staff for the department. The
of scope. The scope ranges from the “big picture” perspective of the long range              Community Development Block Grant (CDBG) and the Moderately Priced
planners, to the neighborhood scope taken by the zoning staff, to the mechanical             Dwelling Unit (MPDU) program are administered and evaluated by this division.
and safety review by the permitting staff and inspectors.                                    This division was renamed from the Management and Support Division to the
                                                                                             Housing Division in FY11.
The Executive Division leads and manages the planning, zoning and permitting
programs of the City, which are in the midst of watershed changes in policy and              Significant Changes:
process by virtue of a new Zoning Ordinance and new Building Code. New
development review procedures include additional meetings, broader public                    Adopted FY10 to Estimated Actual FY10
notification and more staff time per application. Implementation involves outlining          Personnel expenditures decreased by $31,900 mainly due to savings from two
and communicating the details of these changes with predictability and                       vacant positions (Planner III and Administrative Assistant II) and an increase in
consistency so that citizens, businesses, developers and staff understand                    benefit costs. Contractual services expenditures decreased by $363,500 mainly
expectations. Toward that end, the first annual Citizen’s Planning Academy will              due to only half of the multi-year CDBG grant being spent in FY10.
be conducted. Maintaining the respected quality of plan review, inspections, staff
reports and advice is a key objective.                                                       Estimated Actual FY10 to Adopted FY11
The Long Range Planning and Implementation Division facilitates the drafting                 Personnel expenditures increased by a net $187,600 mainly due to an increase
and adoption of many community plans that reflect the overall policies of the                in benefit costs, the addition of personnel expenditures related to the CDBG
community and direct future development and infrastructure decisions. These                  grant, and the elimination of two vacant positions. Contractual services
plans range from the Citywide comprehensive Master Plan, which is revisited                  expenditures increased by a net $197,200 due to reductions in travel, training,
every six years per State law, to plans that relate to a special topic or geographic         fees, publications, outside printing and the addition of contractual services for the
area such as the Rockville Pike Corridor Plan or Twinbrook Neighborhood Plan.                CDBG grant. Other expenditures increased by $97,700 due to the transfer of
The update of the Comprehensive Master Plan will be the focus of this division               funding for three outside agencies (Rockville Housing Enterprises, Heritage
for the next two (2) years.                                                                  Tourism Alliance of Montgomery County, and Peerless Rockville Historic
                                                                                             Preservation) from Non-Departmental to CPDS.
The Planning and Zoning Division analyzes and coordinates development
applications for residential and commercial development in Rockville. This
Division administers and interprets the Zoning Ordinance. The Development
Review cost center implements the procedures required by the code and reviews
applications to ensure compliance with City codes. The Historic Preservation cost
center works to preserve Rockville’s historic and archeological resources through
design review, education and tax credit assistance. In FY11, this Division will
continue to staff four boards/commissions: the Planning Commission, Board of
Appeals, Historic District Commission and the Sign Review Board.
                                                                                       8-3
         Department of Community Planning and Development Services
                                                     Division: CPDS Executive

Division: CPDS Executive


                           Actual    Adopted    Est. Act.    Adopted                                    Actual    Adopted    Est. Act.    Adopted
                            FY09        FY10       FY10         FY11                                     FY09        FY10       FY10         FY11
Division Expenditures                                                        Source of
by Cost Center                                                               Division Funds
Executive                220,613     209,500    206,650      220,195         Departmental Revenue          0           0           0           0
Division Total          $220,613    $209,500   $206,650     $220,195           Subtotal                   $0          $0          $0          $0
                                                                             Fund Contribution
                                                                             General Fund (110)       220,613     209,500    206,650      220,195
                           Actual    Adopted    Est. Act.    Adopted         Subtotal                $220,613    $209,500   $206,650     $220,195
                            FY09        FY10       FY10         FY11         Division Total          $220,613    $209,500   $206,650     $220,195
Division Expenditures
by Type
Salary and Wages         165,514     164,200    164,200      168,850                                    Actual    Adopted    Est. Act.    Adopted
Benefits                  29,196      30,000     32,265       38,360                                     FY09        FY10       FY10         FY11
Overtime                       0           0          0            0         Staffing Summary
  Personnel Subtotal    $194,710    $194,200   $196,465     $207,210         by Cost Center (FTEs)
Contractual Services      25,514      14,300      9,685       12,985         Regular
Commodities                  389       1,000        500            0         Executive                     1.0        1.0         1.0         1.0
Capital Outlays                0           0          0            0         Regular Subtotal              1.0        1.0         1.0         1.0
Other                          0           0          0            0         Temporary
  Operating Subtotal     $25,903     $15,300    $10,185      $12,985         Executive                     0.1        0.0         0.0         0.0
Division Total          $220,613    $209,500   $206,650     $220,195           Temporary Subtotal          0.1        0.0         0.0         0.0
                                                                             Division Total                1.1        1.0         1.0         1.0




                                                                       8-4
          Department of Community Planning and Development Services
                                                                 Division: CPDS Executive

Division: CPDS Executive                                                                                          Cost Center: CPDS Executive
Division Purpose:
                                                                                            Cost Center Summary:
The CPDS Executive Division leads staff to put forth the highest quality
documents, presentations and confident advice for its varied topics and projects.                                               Actual         Adopted       Est. Act.           Adopted
The quality of data, written staff reports, master plans and ordinances is inherent                                              FY09             FY10          FY10                FY11
to effective planning and regulating for a progressive urban community with
complex issues. The director also provides technical and strategic advice as                Total Expenditures                 220,613          209,500          206,650         220,195
requested by the Mayor and Council, the Planning Commission and other boards                Total Revenues                           N/A             N/A            N/A              N/A
and commissions. The CPDS Department is one of the most public and fields a
large amount of phone calls and walk-ins requesting general zoning or permitting
information, historic research, property information and code interpretations.              Objectives:

The Executive Division coordinates and directs Department activities to ensure                     •    Respond to citizen and applicant requests for information and
that services and projects support and enhance Citywide policies and programs.                          complaints
Consensus building across departments and in the community is an important
                                                                                                   •    Improve the efficiency of development review (site plan) procedures for
function. The Director advises the Mayor and Council, boards and commissions
and the community about codes, long range plans, procedures and their                                   applicants and reviewers
implications on the City. In addition, the director facilitates realization of the                 •    Streamline the permitting process for routine trades permits
Master Plan’s vision and objectives by ensuring that codes and plans are
enforced. The director works to improve service delivery and operations in all              Performance Measures:
Divisions. Special attention is given to drafting and maintaining procedure
manuals, formalizing the various application procedures and improving web
                                                                                                                                           Actual     Target       Est. Act.       Target
information for the benefit of staff efficiency and customer service.
                                                                                                                                            FY09       FY10           FY10          FY11
Significant Changes:                                                                            Increase the percent of Citizen
                                                                                                                                           62 / 72   90 / 100          5/7         27 / 30
                                                                                                Service Requests (CSRs) closed
Adopted FY10 to Estimated Actual FY10                                                                                                      or 86%     or 90%        or 71%         or 90%
                                                                                                within 5 working days to 90% *
None.
                                                                                                Maintain the average number of
                                                                                                resubmittals / revisions for site
Estimated Actual FY10 to Adopted FY11                                                                                                         N/A          3.0             2.0        3.0
                                                                                                plans to three or less per project
Personnel expenditures increased by $10,700 due to an increase in benefit and                   **
salary costs.                                                                                   Maintain the average number of
                                                                                                revisions for permits at three per            N/A          3.0             2.5        3.0
                                                                                                project **
                                                                                            *      The method of referring CSRs to departments has changed resulting in fewer
                                                                                                   department referrals. The actual number of CSRs can vary depending on citizen
                                                                                                   concerns and input.
                                                                                            **     This was a new Performance Measure in FY10.




                                                                                      8-5
          Department of Community Planning and Development Services
                                                              Division: CPDS Executive

Workload Measures:

                                Actual       Estimate   Est. Act.   Estimate
                                 FY09            FY10      FY10         FY11
 Community meetings
                                   N/A            40          43         40
 attended annually *
 Calls and walk-ins for            841            800        680         800
 information *                per week       per week   per week    per week
 Procedure manuals and
 case schedules
                                   N/A             4           2          1
 published and
 maintained *
* This was a new Workload Measure in FY10.

Regular Positions:

                                             Adopted    Adopted      Adopted
 Position Title
                                                FY09       FY10         FY11
 Director of Community Planning and
                                                  1.0        1.0          1.0
 Development Services
 Cost Center Total                                1.0        1.0          1.0




                                                                                8-6
Department of Community Planning and Development Services
                                               Division: CPDS Executive




     The Alaire at the Twinbrook Metro Station                        Twinbrook Place at the Twinbrook Metro Station
A new mixed-use development in the City of Rockville                A new office building located in the City of Rockville




                                                         8-7
           Department of Community Planning and Development Services
                                             Division: Long Range Planning and Implementation

Division: Long Range Planning and
Implementation
                                    Actual      Adopted        Est. Act.     Adopted                                         Actual     Adopted     Est. Act.    Adopted
                                     FY09          FY10           FY10          FY11                                          FY09         FY10        FY10         FY11
Division Expenditures                                                                           Source of
by Cost Center                                                                                  Division Funds
Long Range Planning                                                                             Departmental Revenue
                                  337,232       571,100       602,830        584,470
 and Implementation                                                                             Property Tax (370) **     1,020,711         N/A          N/A         N/A
Redevelopment *                   231,079            N/A            N/A           N/A           Misc. Revenue (370) **        1,694         N/A          N/A         N/A
Town Center                                                                                       Subtotal               $1,022,405         $0           $0          $0
                                  759,252            N/A            N/A           N/A
 Management District **                                                                         Fund Contribution
Division Total                $1,327,563       $571,100      $602,830      $584,470             General Fund (110)         568,311      571,100     602,830      584,470
                                                                                                Twn Cnter Mng.
                                    Actual      Adopted        Est. Act.     Adopted             Dist.(370) **             (263,153)         N/A         N/A          N/A
                                     FY09          FY10           FY10          FY11            Subtotal                   $305,158    $571,100    $602,830     $584,470
Division Expenditures                                                                           Division Total           $1,327,563    $571,100    $602,830     $584,470
by Type
Salary and Wages                 376,813        442,200       442,320       453,020
Benefits                          91,138         93,500       102,880       120,610                                          Actual     Adopted     Est. Act.    Adopted
Overtime                             432              0             0             0                                           FY09         FY10        FY10         FY11
  Personnel Subtotal            $468,383       $535,700      $545,200      $573,630             Staffing Summary
Contractual Services             843,825         35,400        57,630         8,990             by Cost Center (FTEs)
Commodities                       15,355              0             0         1,000             Regular
Capital Outlays                        0              0             0           850             Long Range Planning
Other                                  0              0             0             0              and Implementation              4.0        5.8          5.8         5.8
  Operating Subtotal            $859,180        $35,400       $57,630       $10,840             Redevelopment *                  2.0        N/A          N/A         N/A
Division Total                $1,327,563       $571,100      $602,830      $584,470             Regular Subtotal                 6.0        5.8          5.8         5.8
                                                                                                Temporary
*    In FY10 the functions of the Redevelopment cost center were absorbed into the Long         Long Range Planning
     Range Planning cost center.                                                                 and Implementation              0.4         0.3         0.3          0.0
**   The Town Center Management District cost center was moved to the Department of
     Recreation and Parks’ Facilities Division for the long-term management and                   Temporary Subtotal             0.4         0.3         0.3          0.0
     maintenance of the facilities in FY10.                                                     Division Total                   6.4         6.1         6.1          5.8




                                                                                          8-8
          Department of Community Planning and Development Services
                                           Division: Long Range Planning and Implementation

                                                                                           Significant Changes:
Division: Long Range Planning and
Implementation                                                                             Adopted FY10 to Estimated Actual FY10
                                                                                           Personnel expenditures increased by $9,500 mainly due to increases in the cost
Division Purpose:                                                                          of benefits. Contractual services expenditures increased by a net $22,200 mainly
                                                                                           due to the addition of $28,700 in purchase orders that carried over from FY09, a
The primary purpose of the Long Range Planning and Implementation Division is              $16,500 increase in consultant costs, and a total of $22,900 in contractual
to prepare and coordinate implementation of the City’s Comprehensive Master                services expenditures that were reduced to offset decreased revenue projections
Plan (CMP), neighborhood plans, and other special plans, under the direction of            during FY10.
the Rockville Planning Commission and the Mayor and Council. The Division
carries out this purpose in partnership with other City staff, and by working with
                                                                                           Estimated Actual FY10 to Adopted FY11
Rockville citizens, businesses, organizations and other levels of government.
These plans are based fundamentally on citizen-identified goals and the Mayor              Personnel expenditures increased by a net $28,400 due to the elimination of
and Council vision, but must also comply with State planning requirements. The             temporary worker funding and an increase in benefits. Contractual services
City’s legal right to enforce its own land-use regulations, including zoning, is           expenditures decreased by $48,600 due to reductions in consultants, outside
contingent on the City maintaining a CMP that is in accordance with Article 66b            printing, travel, training, dues, fees, and publication expenditures.
of the State code.
                                                                                           Cost Center: Long Range Planning and Implementation
Planning efforts that have been completed in recent years include neighborhood
plans for Twinbrook, Lincoln Park, East Rockville, and Town Center, which have
been adopted into the CMP. Continuing efforts include State requirements for a             Cost Center Summary:
Municipal Growth Element and a Water Resources Element in the CMP, and an
update to the Rockville Pike plan. This year, the Division led the State-mandated                                         Actual      Adopted       Est. Act.    Adopted
review, which culminated in the Mayor and Council’s approval of a multi-year                                               FY09          FY10          FY10         FY11
approach to revising the CMP. The major upcoming initiative in FY11 will be to             Total Expenditures            337,232       571,100       602,830      584,470
launch a broad citizen-centered effort to envision the City’s future, prior to
                                                                                           Total Revenues                    N/A           N/A           N/A           N/A
revising the City’s Comprehensive Master Plan.

Plans developed cover a broad range of topics that are crucial to continuous               Objectives:
enhancement of the quality of life in Rockville. Key areas include the Goals and
Objectives, Land Use, Urban Design, Housing, Infrastructure, Parks, Open                       •   Prepare and coordinate the implementation of the State-mandated
Space, Safety, Transportation, and Historic Preservation. A core function of the                   Master Plan, neighborhood plans and other special plans for the City
Division is to coordinate with other City staff and, when necessary, County and
State agencies.                                                                                •   Provide support for the Planning Commission, and other boards,
                                                                                                   commissions and citizen/neighborhood groups
The Division also prepares and maintains descriptive data, develops Geographic
Information Systems (GIS) maps, and prepares Rockville growth projections that                 •   Prepare data/information and growth projections in support of City,
serve City, County, State and regional planning needs. In addition, the Division                   County, State and regional needs, including the Comprehensive Master
prepares data, special studies and reports that support other City, County, State                  Plan, and reports to the Metropolitan Washington Council of
or regional efforts and initiatives. Since 2008, the Division has led the City’s                   Governments (COG)
effort to prepare for the 2010 Census, and will prepare reports based on the                   •   Monitor planning efforts relevant to Rockville conducted by other
results of the Census when data is released during FY11.                                           agencies such as, Montgomery County, the City of Gaithersburg,
                                                                                                   Washington Metropolitan Area Transit Authority (WMATA), and the
                                                                                                   State of Maryland in order to provide relevant information to the

                                                                                     8-9
             Department of Community Planning and Development Services
                                              Division: Long Range Planning and Implementation

            Planning Commission and Mayor and Council on current and upcoming                    Workload Measures:
            projects that will have an impact on the City of Rockville
                                                                                                                                       Actual     Estimate   Est. Act.   Estimate
Performance Measures:                                                                                                                   FY09          FY10      FY10         FY11
                                                                                                     Community planning
                                          Actual       Target    Est. Act.    Target                                                      N/A          40          20         30
                                                                                                     meetings managed *
                                           FY09         FY10        FY10       FY11
    Maintain or exceed 90 percent                                                                    County/regional/State
                                                                                                                                          N/A          30          40         40
    of meetings that participants                      18 / 20    13 / 15     18 / 20                meetings attended *
    rate the quality to be “good” or         N/A       or 90%     or 87%      or 90%                 Planning Commission
    “excellent” *                                                                                                                         N/A          25          20         20
                                                                                                     agenda items prepared *
    Increase the percent of                                                                          Presentations to other
                                                                                                                                          N/A          25          12         15
    presentations that Planning                                                                      Boards and Commissions *
                                                       14 / 15       3/4         7/7
    Commission members rate the                                                                      Mayor and Council agenda
                                             N/A       or 93%     or 75%     or 100%                                                      N/A          15          14         15
    quality “good” or “excellent” to                                                                 items prepared *
    85 percent or greater *
                                                                                                     Other reports prepared, for
    Maintain or exceed 85 percent                                                                    City, County, State or               N/A          18          14         15
    of reports that Planning                                                                         regional bodies *
                                                       22 / 25       4/4         7/7
    Commission members rate the              N/A                                                 *      This was a new Workload Measure in FY10
                                                       or 88%    or 100%     or 100%
    quality to be “good” or
    “excellent” *                                                                                Regular Positions:

    Maintain or exceed 85 percent                                                                                                                 Adopted    Adopted      Adopted
    of Planning Commission                                                                           Position Title
                                                          6/7        4/4         7/7                                                                 FY09       FY10         FY11
    members rating the quality of
                                             N/A       or 86%    or 100%     or 100%                 Chief of Long Range Planning and
    staff technical knowledge to be                                                                                                                    0.0         1.0         1.0
    “good” or “excellent” *                                                                          Redevelopment
                                                                                                     CPDS Specialist                                   0.0         1.0         1.0
    Maintain the percent of reports
    on construction, demographic                                                                     Planner III                                       1.0         1.0         2.0
                                                          6/6        7/7         6/6
    and economic data delivered to           N/A
                                                      or 100%    or 100%     or 100%                 Planner II                                        2.0         2.8         1.8
    City, county and regional bodies
    on-time at 100% *                                                                                Planning Technician                               1.0         0.0         0.0
*      This was a new Performance Measure for FY10.                                                  Cost Center Total                                 4.0         5.8         5.8




                                                                                        8 - 10
          Department of Community Planning and Development Services
                                            Division: Long Range Planning and Implementation

Supplemental Information:                                                                       the eastern portion of the Rockville Metro Station. The Mayor and Council
                                                                                                approved and adopted the plan in 2004.
Plans in Progress
                                                                                                Lincoln Park Neighborhood Plan – Beginning in 2002, a Neighborhood Plan
Comprehensive Master Plan (CMP) – The Long Range Planning and                                   Advisory Group, working with City staff, worked to develop a new plan to replace
Implementation Division is managing a 4-year, 2-phase process to update the                     the 1984 plan. The revised plan, which was approved and adopted by the Mayor
City’s CMP, in accordance with direction from the Mayor and Council and                         and Council in 2007, provides goals and recommendations for the neighborhood
Planning Commission. Phase l involves developing and adopting two new State                     for the next 20 years. The neighborhood planning process also created the
required elements to the Plan, on Municipal Growth and Water Resources (in                      Lincoln Park Community Preservation Committee, which recommended a
concert with the Department of Public Works); adopting new planning strategies                  method to preserve the unique neighborhood character and history of Lincoln
for Parks, Recreation and Open Space (led by the Department of Recreation and                   Park. The result of the committee’s effort is the Lincoln Park Conservation
Parks); becoming part of Montgomery County’s Heritage Area; and updating key                    District Plan (2007), which established Rockville’s first Conservation District.
data that underlies the overall CMP. The first phase also involves an active
discussion with the Planning Commission on topics related to the CMP. This                      Town Center Master Plan – The Town Center Master plan was approved in
activity will serve to prepare for the Phase II effort, which will begin in FY11, to            2001, providing a clear vision and guide for the future of Rockville’s downtown.
actively engage the Rockville public in a broader revision of the CMP. The                      With the goal of creating a “daytime, evening and weekend activity center that is
Master Plan describes the broad vision for the City’s future on development and                 easily identifiable, pedestrian-oriented, and incorporates a mix of uses and
sustainability, and is used to test the appropriateness of both public and private              activities,” the plan envisions a mix of office, retail and residential uses. The plan
development proposals. Key areas of the Plan include the City’s Goals and                       also recognizes the importance of the Rockville Metro station to Town Center’s
Objectives, Land Use, Urban Design, Housing, Infrastructure, Parks, Open                        revitalization, and advocates enhancing pedestrian connectivity between the
Space, Transportation, Economic Development, Historic Preservation, Water                       Metro station and Town Center, as well as the importance of a balance between
Resources, and Municipal Growth.                                                                vehicular and pedestrian access to Town Center form surrounding
                                                                                                neighborhoods and not encouraging large amounts of through-traffic. Rockville
Rockville’s Pike: Envision A Great Place – Long Range Planning staff is working                 Town Square represents the initial implementation of the Master Plan vision.
with the community, expert consultants, Montgomery County and the State of
Maryland to develop a new vision and plan for the portion of Rockville Pike that is             Twinbrook Neighborhood Plan – The Twinbrook Neighborhood Plan provides the
in the City of Rockville. The developing plan envisions a transformation of the                 City and Twinbrook residents a set of goals and recommendations that will guide
Pike corridor area over time into a tree-lined boulevard that is attractive for                 the future of Twinbrook for the next 20 years.        Beginning in 2005, a
business and residents, and that transit users, drivers, pedestrians and cyclists               Neighborhood Plan Advisory Group worked with City staff to identify and
all can navigate successfully. The goal is for Rockville’s main commercial                      evaluate neighborhood issues. This group has provided guidance and feedback
corridor to be a place of economic vitality, sustainability, and visual appeal. For             throughout the planning process. In addition, an extensive public outreach
more       information     please      visit    the      City’s     website      at:            program was undertaken to provide the entire community an opportunity to give
http://www.rockvillemd.gov/rockvillespike/.                                                     input. On April 27, 2009 the Mayor and Council adopted the Twinbrook
                                                                                                Neighborhood Plan.
Examples of Adopted Plans
                                                                                                For a comprehensive list of all of the City’s adopted plans and updated
East Rockville Neighborhood Plan – The Plan provides detailed goals and                         information on plans in progress please visit the City’s website at
recommendations for the neighborhood, which is generally bounded by the                         http://www.rockvillemd.gov/masterplan/.
Rockville Metro Station and Stonestreet Avenue corridor on the west, Veirs Mill
Road on the south, First Street on the east and the Lincoln Park neighborhood
and Southlawn industrial area on the north. A primary goal is to preserve the
neighborhood’s existing sense of identity as a quiet and secure residential
neighborhood.        The East Rockville Neighborhood Plan includes
recommendations for the future of the Stonestreet Avenue industrial corridor and

                                                                                       8 - 11
         Department of Community Planning and Development Services
                                                     Division: Planning and Zoning

Division: Planning and Zoning

                           Actual     Adopted      Est. Act.     Adopted                                        Actual     Adopted      Est. Act.     Adopted
                            FY09         FY10         FY10          FY11                                         FY09         FY10         FY10          FY11
Division Expenditures                                                                Source of
by Cost Center                                                                       Division Funds
Zoning                   352,177      290,000      292,810       308,410             Departmental Revenue
Development                                                                          Grants (110)              11,356            0       10,750             0
                         342,412      658,300      665,090       722,285
 Review                                                                              Zoning/Subdivision
Historic Preservation    231,504       185,600      128,520       142,015             Fees (110)               61,361       50,000       69,470        50,000
Division Total          $926,093    $1,133,900   $1,086,420    $1,172,710              Subtotal               $72,717      $50,000      $80,220       $50,000
                                                                                     Fund Contribution
                                                                                     General Fund (110)       853,376     1,083,900    1,006,200     1,122,710
                           Actual     Adopted      Est. Act.     Adopted             Subtotal                $853,376    $1,083,900   $1,006,200    $1,122,710
                            FY09         FY10         FY10          FY11             Division Total          $926,093    $1,133,900   $1,086,420    $1,172,710
Division Expenditures
by Type
Salary and Wages         734,337       910,800      864,350       860,400                                       Actual     Adopted      Est. Act.     Adopted
Benefits                 168,103       198,000      191,720       245,870                                        FY09         FY10         FY10          FY11
Overtime                   1,587             0            0             0            Staffing Summary
  Personnel Subtotal    $904,027    $1,108,800   $1,056,070    $1,106,270            by Cost Center (FTEs)
Contractual Services      20,410        24,100       30,350         9,940            Regular
Commodities                1,656         1,000            0             0            Zoning                        4.0          3.0          3.0           3.0
Capital Outlays                0             0            0             0            Development
Other                                                                                                              4.0          7.0          7.0           7.0
                               0             0            0        56,500             Review
  Operating Subtotal     $22,066       $25,100      $30,350       $66,440            Historic Preservation        2.6           1.8          1.8           0.8
Division Total          $926,093    $1,133,900   $1,086,420    $1,172,710            Regular Subtotal            10.6          11.8         11.8          10.8
                                                                                     Temporary
                                                                                       Temporary Subtotal         0.0           0.0          0.0           0.0
                                                                                     Division Total              10.6          11.8         11.8          10.8




                                                                            8 - 12
          Department of Community Planning and Development Services
                                                             Division: Planning and Zoning

                                                                                              Significant Changes:
Division: Planning and Zoning
                                                                                              Adopted FY10 to Estimated Actual FY10
Division Purpose:                                                                             Personnel expenditures decreased by $52,700 due to a vacant position, which
                                                                                              was used to offset decreased revenue projections during FY10. Contractual
The Planning and Zoning Division is responsible for ensuring that new and                     services expenditures increased by a net of $6,200 mainly due to $10,700 in new
existing developments comply with land use regulations and Master Plan                        grants awarded to the City and a reduction of $3,700 to offset decreased revenue
policies. The Comprehensive Master Plan and various development codes were                    projections during FY10.
adopted with the goal of improving the quality of the City’s built environment.

The Zoning cost center is responsible for interpreting and administering the                  Estimated Actual FY10 to Adopted FY11
Zoning Ordinance, as well as enforcement. With the adoption of a new Zoning                   Personnel expenditures increased by a net $50,200 mainly due to an increase in
Ordinance in 2008, the cost center will continue to make recommendations for                  benefit costs. Contractual services expenditures decreased by $20,400 due to
refinement to the ordinance and associated documents. The Zoning cost center                  reductions in travel, training, dues, fees, publications and outside printing
also reviews and processes applications for amendments to the Zoning                          expenditures. Other expenditures increased by $56,500 because funding for two
Ordinance.                                                                                    outside agencies, Heritage Tourism Alliance of Montgomery County ($2,000) and
                                                                                              Peerless Rockville Historic Preservation ($54,500), were moved from the Non-
Project managers in the Development Review cost center review development                     Departmental Department to CPDS.
applications for compliance with the City’s Master Plan and neighborhood plans,
the Zoning Ordinance and other relevant codes and policies as well as previous                                         Cost Center: Zoning
project approvals. They also coordinate reviews of other departments and
agencies and often facilitate consensus when policies or regulations conflict.
                                                                                              Cost Center Summary:
Staff members prepare the written recommendations and make presentations on
applications for consideration by the appropriate approving authority, as well as
                                                                                                                             Actual      Adopted       Est. Act.    Adopted
act as the primary resource for public information on the City’s development
                                                                                                                              FY09          FY10          FY10         FY11
review process.
                                                                                              Total Expenditures            352,177       290,000       292,810      308,410
The Historic Preservation cost center promotes the City’s goal of preservation                Total Revenues                    N/A           N/A           N/A           N/A
of historic resources, including conducting surveys and research on historic
properties, promoting heritage tourism and administering historic districts. Staff
members evaluate properties for potential historic designation, and also review               Objectives:
applications for exterior changes and tax credits for properties or structures
within designated historic districts.                                                             •   Coordinate and manage appropriate revisions to the City’s Zoning
                                                                                                      Ordinance through the text amendment process in order to improve the
The Planning and Zoning Division provides staff support to four important City                        document as necessary
boards and commissions, including the Planning Commission, Board of Appeals,                      •   Interpret and administer the Zoning Ordinance, including the sign
Historic District Commission and Sign Review Board, as well as to the Mayor and                       ordinance, in order to ensure existing and new development enhances
Council for development applications that require their review and action. The                        the quality of the built environment
staff attends the boards and commissions meetings, and provides a written staff
report and recommendation in advance. Staff coordinates the participation of                      •   Enforce the Zoning Ordinance proactively throughout the City in a fair
representatives of other department staff in board meetings as necessary. This                        and equitable manner
division is also responsible for preparing the agenda brief book, preparing                       •   Provide staff support to the Sign Review Board
meeting minutes and distributing information publicly through various sources.


                                                                                     8 - 13
              Department of Community Planning and Development Services
                                                                   Division: Planning and Zoning

Performance Measures:                                                                                Regular Positions:

                                   Actual         Target        Est. Act.         Target                                                           Adopted        Adopted         Adopted
                                                                                                      Position Title
                                    FY09           FY10            FY10            FY11                                                               FY09           FY10            FY11
    Maintain the average                                                                              Principal Planner                                   1.0           1.0             1.0
    number of days to                                                                                 Planner II *                                        1.0           1.0             1.0
    respond to zoning                   12             12               8             10
    verification letters at                                                                           Planning Technician *                               2.0           0.0             0.0
    10 or less                                                                                        Zoning Inspector II                                 0.0           1.0             1.0
    Improve the average                                                                               Cost Center Total                                   4.0           3.0             3.0
    number of days to
    process text                                                                                     * The Planning Technician and all levels of the Planner positions are banded and can be
                                      419             180              32            100               hired at any level between a Planning Technician and Planner III.
    amendments and
    forward to
    commission *                                                                                                       Cost Center: Development Review
    Maintain the average
    number of days to                                                                                Cost Center Summary:
                                         5               4              4               4
    abate zoning
    violations at 4 or less                                                                                                            Actual       Adopted        Est. Act.      Adopted
                                                                                                                                        FY09           FY10           FY10           FY11
*      In FY10 the two text amendments processed were Mayor and Council initiated and
       took less time to process. The Target FY11 assumes the test amendments will not be            Total Expenditures               342,412        658,300        665,090        722,285
       Mayor and Council initiated and will take longer to process.                                  Total Revenues                    61,361         50,000         69,470         50,000
Workload Measures:
                                                                                                     Objectives:
                                   Actual       Estimate        Est. Act.      Estimate
                                    FY09            FY10           FY10            FY11                  •    Ensure new development meets the City’s vision as expressed through
    Number of zoning                                                                                          the Comprehensive Master Plan, Zoning Ordinance and other
    verification letters                40             45              14             25                      development regulations
    received                                                                                             •    Continue to improve the development review process, including
    Number of zoning text                                                                                     continued use of Development Review Manual procedures to ensure
    amendments                           1               8              5               8                     coordinated, timely and professional review of development applications
    processed
    Number of zoning                                                                                     •    Provide high quality professional support to the Planning Commission
                                      N/A              30              60             65
    violations reported                                                                                       and Board of Appeals
    Number of sign                                                                                       •    Provide accurate information in response to inquires regarding the City’s
                                      111             200            197             150
    permits processed                                                                                         development review process and development projects




                                                                                            8 - 14
             Department of Community Planning and Development Services
                                                                   Division: Planning and Zoning

Performance Measures:                                                                                 Workload Measures:
                                           Actual       Target     Est. Act.      Target                                                      Actual    Estimate      Est. Act.   Estimate
                                            FY09         FY10         FY10         FY11                                                        FY09         FY10         FY10         FY11
    Increase the percent of Citizen
                                                                                                       Number of applications
    Survey respondents rating
                                                                                                       processed: *
    satisfaction with the quality of
    new development as                                                                                     •   Project Plan **                   N/A            10            1            5
    “excellent” or “good” *                                                                                •   Site Plan **                      N/A            15           35           12
         •    Residential                                                                                  •   Special Exception                   3             8            4            8
                                             68%           68%          68%          70%
         •    Commercial                                                                                   •   Variance                            3            15           14           12
                                             68%           68%          68%          70%
                                                                                                           •   Record Plat                         4            12            3            8
    Maintain the percentage of
    Planning Commission and                                                                           *    The development moratorium ended during FY09, on March 16, 2009.
    Board of Appeals members                             9 / 11         7/7       11 / 11             **   This was a new Workload Measure in FY10.
                                              N/A
    rating technical quality of staff                   or 82%      or 100%      or 100%
    reports as “good” or “excellent”                                                                  Regular Positions:
    **
                                                                                                                                                       Adopted       Adopted       Adopted
                                                                                                       Position Title
    Maintain or increase the                                                                                                                              FY09          FY10          FY11
    percent of Planning                                                                                Chief of Planning                                     1.0           1.0           1.0
    Commission and Board of
                                                         9 / 11         6/7       11 / 11              Principal Planner                                     1.0           1.0           1.0
    Appeals members rating                    N/A
                                                        or 82%       or 86%      or 100%
    technical quality of staff                                                                         Planner III *                                         1.0           1.0           1.0
    presentation and knowledge
    as “good” or “excellent” **                                                                        Planner II *                                          0.0           2.0           2.0

    Maintain the average number                                                                        Planner I *                                           1.0           1.0           1.0
    of days required to make staff                                                                     Permit Technician                                     0.0           1.0           1.0
    recommendation on Project                 N/A          210            88          150
    Plan applications at or below                                                                      Cost Center Total                                     4.0           7.0           7.0
    150 **                                                                                            * The Planning Technician and all levels of the Planner positions are banded and can be
                                                                                                        hired at any level between a Planning Technician and Planner III.
    Maintain the average number
    of days required to make staff
                                              N/A          120           102          120
    recommendation on Site Plan
    applications at or below 120 **
    Maintain the average number
    of days required to make staff
    recommendation on Special                 N/A          150           168          100
    Exception applications at or
    below 100 **
*      The City conducts a citizen survey every other year. A survey was conducted in FY09
       and the next survey will take place in FY11.
**     This was a new Performance Measure in FY10.


                                                                                             8 - 15
         Department of Community Planning and Development Services
                                                       Division: Planning and Zoning

Supplemental Information:                                                                              Cost Center: Historic Preservation
The City’s Development Review cost center coordinates review of development
applications and determines compliance with the comprehensive and                      Cost Center Summary:
neighborhood plans, the Rockville Zoning Ordinance and other City Code and
regulations. The Development Review procedures manual can be found at:                                                     Actual      Adopted     Est. Act.    Adopted
http://www.rockvillemd.gov/government/cpds/development-review.html.                                                         FY09          FY10        FY10         FY11
                                                                                       Total Expenditures                 231,504      185,600     128,520       142,015
                                                                                       Total Revenues                      11,356            0       10,750             0


                                                                                       Objectives:

                                                                                           •    Maintain the integrity of Rockville’s historic districts by reviewing
                                                                                                proposed exterior alterations to designated structures for Certificates of
                                                                                                Approval
                                                                                           •    Assist residents in qualifying and applying for tax credits, provided by
                                                                                                the State of Maryland and Montgomery County
                                                                                           •    Increase the visibility of historic preservation in the community through
                                                                                                heritage tourism initiatives and the media
                                                                                           •    Provide a basis for additional preservation by documenting and
                                                                                                evaluating the historic significance of buildings, districts, sites and
                                                                                                structures
                                                                                           •    Pursue financial assistance through matching grant programs in order to
                                                                                                expand capacity of the City’s historic preservation programs
                                                                                           •    Provide quality professional support to the Historic District Commission


                                                                                       Performance Measures:

                                                                                                                              Actual      Target    Est. Act.     Target
                                                                                                                               FY09        FY10        FY10        FY11
                                                                                        Improve the percent of
                                                                                        Citizen Survey respondents
                                                                                        rating satisfaction with the
                                                                                                                                68%         68%         68%          70%
                                                                                        amount of information
                                                                                        available on Historic Districts
                                                                                        as “about right” *



                                                                              8 - 16
             Department of Community Planning and Development Services
                                                                   Division: Planning and Zoning

                                         Actual        Target     Est. Act.       Target              Regular Positions:
                                          FY09          FY10         FY10          FY11
                                                                                                                                                        Adopted      Adopted        Adopted
    Maintain or increase the                                                                           Position Title
                                                                                                                                                           FY09         FY10           FY11
    percent of HDC members
                                                         5/5        1 / 1***         5/5               Planner III * **                                        1.0          1.0           0.0
    rating technical quality of             N/A
                                                     or 100%       or 100%       or 100%
    staff reports as “good” or                                                                         Planner II (part time) **                               1.6          0.8           0.8
    “excellent” at 100 percent **
                                                                                                       Cost Center Total                                       2.6          1.8           0.8
    Maintain or increase the
    percent of HDC members                                                                            * The Planner III position was frozen during FY10 and eliminated in FY11 due to limited
                                                                                                         General Fund resources.
    rating quality of staff                              5/5        1 / 1***         5/5
                                            N/A                                                       ** The Planning Technician and all levels of the Planner positions are banded and can be
    presentations and                                or 100%       or 100%       or 100%                 hired at any level between a Planning Technician and Planner III.
    discussion as “good” or
    “excellent” at 100 percent **                                                                     Supplemental Information:
*      The City conducts a citizen survey every other year. A survey was conducted in FY09
       and the next survey will take place in FY11.                                                   Each fiscal year, the City awards funding to outside agencies that provide
**     This was a new Performance Measure in FY10.                                                    services to the residents of Rockville through a competitive application review
***    Only one out five members responded to the survey in FY10.                                     process. Such funding for the following agencies is included in the Planning and
                                                                                                      Zoning Division budget for FY11:
Workload Measures:
                                                                                                               •    The Heritage Tourism Alliance of Montgomery County – This
                                       Actual      Estimate       Est. Act.     Estimate                            nonprofit promotes tourism to historic sites and recreation services
                                        FY09           FY10          FY10           FY11                            in Rockville and Montgomery County through special events,
    Number of Applications for:                                                                                     publications and marketing initiatives. The $2,000 in funding for this
                                                                                                                    organization was moved from Non-Departmental to the Historic
       •   Certificates of                  20            21              3            12                           Preservation cost center in FY11.
           Approval
       •   Tax Credits                      16            20             10            20                      •    The Peerless Rockville Historic Preservation, Ltd – This nonprofit
       •   Historic
                                                                                                                    was established in 1974 to preserve Rockville’s historic character
           Significance                      8            10             12            12                           and the enjoyment of the City’s heritage through public education,
                                                                                                                    activities and events. The $54,500 in funding for this organization
    Number of historic                                                                                              was moved from Non-Departmental to the Historic Preservation
    preservation articles in                                                                                        cost center in FY11.
    Rockville Reports, on the                8              8             4              4
    City website and on
    Rockville 11

    Number of grants being
                                             2              2             2              2
    administered
    Value of grants being
                                      $11,356       $20,000        $10,750       $30,000
    administered




                                                                                             8 - 17
          Department of Community Planning and Development Services
                                                         Division: Inspection Services

Division: Inspection Services
                              Actual     Adopted      Est. Act.     Adopted                                           Actual     Adopted      Est. Act.     Adopted
                               FY09         FY10         FY10          FY11                                            FY09         FY10         FY10          FY11
Division Expenditures                                                                   Source of
by Cost Center                                                                          Division Funds
                                                                                        Departmental Revenue
Application, Processing     612,797      873,300      841,560       889,040             Building Permits (110)      833,994     1,100,000     680,840       800,000
 and Permit Issuance                                                                    Non-Business
Inspection and Code         805,391      665,400      644,410       695,720              Licenses (110)             135,202      110,000      110,000       110,000
 Enforcement                                                                            Fire Protection
Division Total            $1,418,188   $1,538,700   $1,485,970    $1,584,760             Permit (110)               147,730      200,000       70,000       150,000
                                                                                        Fire Code Review (110)       57,367      100,000       50,000        75,000
                                                                                        Citations/
                              Actual     Adopted      Est. Act.     Adopted              Investigations (110)            200            0           0              0
                               FY09         FY10         FY10          FY11               Subtotal                $1,174,493   $1,510,000    $910,840     $1,135,000
Division Expenditures                                                                   Fund Contribution
by Type                                                                                 General Fund (110)           243,695       28,700      575,130       449,760
Salary and Wages           1,111,970    1,230,900    1,171,900     1,203,680            Subtotal                    $243,695      $28,700     $575,130     $449,760
Benefits                     250,800      251,100      271,320       325,100            Division Total            $1,418,188   $1,538,700   $1,485,970    $1,584,760
Overtime                       1,229        1,900        1,900         1,900
  Personnel Subtotal      $1,363,999   $1,483,900   $1,445,120    $1,530,680
Contractual Services          51,195       52,200       35,545        48,950                                          Actual     Adopted      Est. Act.     Adopted
Commodities                    2,994        2,600        5,305         5,130                                           FY09         FY10         FY10          FY11
Capital Outlays                    0            0            0             0            Staffing Summary
Other                              0            0            0             0            by Cost Center (FTEs)
  Operating Subtotal         $54,189      $54,800      $40,850       $54,080            Regular
Division Total            $1,418,188   $1,538,700   $1,485,970    $1,584,760            Application, Processing          8.0         10.0         10.0          10.0
                                                                                         and Permit Issuance
                                                                                        Inspection and Code             11.0          8.0          8.0           8.0
                                                                                         Enforcement
                                                                                        Regular Subtotal                19.0         18.0         18.0          18.0
                                                                                        Temporary
                                                                                          Temporary Subtotal             0.0          0.0          0.0           0.0
                                                                                        Division Total                  19.0         18.0         18.0          18.0




                                                                               8 - 18
          Department of Community Planning and Development Services
                                                              Division: Inspection Services

                                                                                               Objectives:
Division: Inspection Services
                                                                                                       •     Provide accurate and timely customer service for permit application
Division Purpose:                                                                                            intake, processing and issuance to reduce review time and provide a
                                                                                                             better customer experience
The Inspection Services Division enforces various codes and ordinances through
plan review, the issuance of permits and contractor licenses, and the inspection                       •     Review commercial and residential plans in a timely manner to increase
of all phases of residential and commercial construction. In FY10 the staff has led                          the satisfaction and meet the needs of customers
a complete rewrite of Chapter 5 of the City Code and the adoption of the 2009
International Codes. In FY11, the challenge will be the administration of the new              Performance Measures:
Green Building Codes, which will increase overall energy efficiency in the built
environment. The staff administers the fire and safety codes to increase safety                                                         Actual        Target     Est. Act.       Target
and accessibility to the public. The Division will continue to implement means to                                                        FY09          FY10         FY10          FY11
increase effectiveness of service delivery to citizens through training, process
improvements, and public outreach and education.                                                   Increase the percent of
                                                                                                   Citizen Survey respondents
Significant Changes:                                                                               rating the building permit              54%          54%           54%          60%
                                                                                                   process as “excellent” or
Adopted FY10 to Estimated Actual FY10                                                              “good” *
Personnel expenditures decreased by a net $38,800 mainly due to savings from                       Maintain or decrease the
vacant positions, which were used to offset additional operating costs and an                      average number of days to
increase in benefit costs. Contractual services decreased by $16,700 mainly due                    review plans each year
to transfers to other divisions within CPDS for additional operating costs.                        •    Residential new
                                                                                                                                             35            30           18            20
                                                                                                        construction
Estimated Actual FY10 to Adopted FY11                                                              •    Residential renovations/
                                                                                                                                             15            15           14            15
                                                                                                        remodeling
Personnel expenditures increased by a net $85,600 mainly due to an increase in
benefit costs. Contractual services increased by a net $13,400 mainly due to re-                   •    Commercial new
                                                                                                                                             55            50           43            30
budgeting consultant, travel, training, and professional development expenditures                       construction
that were transferred to other CPDS divisions in FY10.                                             •       Commercial renovation             17            54         10**            25
                                                                                               *       The City conducts a citizen survey every other year. A survey was conducted in FY09
                                                                                                       and the next survey will take place in FY11.
Cost Center: Application, Processing & Permit Issuance                                         **      The scope of the FY10 commercial renovations were smaller and required less time
                                                                                                       to review.
Cost Center Summary:

                                Actual       Adopted       Est. Act.     Adopted
                                 FY09           FY10          FY10          FY11
Total Expenditures             612,797       873,300        841,560       889,040
Total Revenues               1,174,493      1,510,000       910,840     1,135,000




                                                                                      8 - 19
             Department of Community Planning and Development Services
                                                                   Division: Inspection Services

Regular Positions:                                                                                   Supplemental Information:

                                               Adopted         Adopted          Adopted                                        Number of Permits Issued
    Position Title
                                                  FY09            FY10             FY11
    Chief of Inspection Services                      1.0             1.0             1.0                                                                          Est. Act.
                                                                                                                                        FY07       FY08    FY09
                                                                                                                                                                      FY10
    Construction Codes Specialist *                   0.0             1.0             1.0
    Fire Marshal **                                   0.0             0.0             1.0               New Houses                         75         17      4           2
    Fire Protection Engineer *                        0.0             1.0             1.0               Residential                      393         467    486         401
    Permit Technician                                 3.0             3.0             3.0               Commercial                       263         236    250         235
    Plans Examiner                                    3.0             3.0             3.0               Demolition                         21         13      3           3
    Construction Inspection                                                                             Fire Protection                  499         390    345         294
                                                      1.0             1.0             0.0
    Supervisor **                                                                                       Mechanical                       808         823    743         690
    Cost Center Total                                 8.0            10.0            10.0               Commercial Electric              550         532    449         411
*     The Construction Codes Specialist and Fire Protection Engineer positions moved from
                                                                                                        Residential Electric             454         377    301         308
      the Inspection and Codes Enforcement cost center within the Inspection Services
      Division in FY10.                                                                                 Plumbing                         464         453    417         453
**    The Fire Marshal moved from the Inspection and Codes Enforcement cost center and
      the Construction Inspection Supervisor moved to the Inspection and Codes                          Commercial Occupancy             317         221    195         174
      Enforcement cost center in FY11.
                                                                                                        Residential Occupancy               5         20      8           5
                                                                                                        Total                           3,849      3,549   3,201      2,976




                                                                                            8 - 20
          Department of Community Planning and Development Services
                                                                  Division: Inspection Services

                                                                                                     Workload Measures:
        Cost Center: Inspection and Code Enforcement
                                                                                                                                                 Actual     Estimate      Est. Act.     Estimate
Cost Center Summary:                                                                                                                              FY09          FY10         FY10           FY11
                                                                                                     Average number of general
                                  Actual       Adopted         Est. Act.      Adopted                                                              2,568        2,500         2,500         2,000
                                                                                                     inspections per FTE *
                                   FY09           FY10            FY10           FY11
                                                                                                     Average number of fire safety
Total Expenditures               805,391          665,400       644,410        695,720                                                             2,500        2,500         2,500         2,500
                                                                                                     inspections per FTE **
Total Revenues                        N/A            N/A             N/A            N/A              *      General inspections include building, plumbing, gas, and electrical inspections related
                                                                                                            to permits, complaints and investigations.
                                                                                                     **     Fire safety inspections include fire systems, sprinklers, alarms, and investigations.
Objectives:
                                                                                                     Regular Positions:
    •    Provide timely inspections of all: new construction, fire protection
         systems, occupancies, complaint investigations, Citizen Service                                                                                Adopted         Adopted         Adopted
                                                                                                         Position Title
         Requests, and proactive re-inspections of active permits                                                                                          FY09            FY10            FY11
    •    Provide homeowners and contractors information about the entire                                 Construction Codes Inspector *                        5.0            5.0              5.0
         inspection process and code issues surrounding various projects with a                          Construction Codes Specialist **                      1.0            0.0              0.0
         goal of reducing the number of re-inspections
                                                                                                         Fire Protection Engineer **                           1.0            0.0              0.0
Performance Measures:                                                                                    Fire Codes Inspector *                                2.0            2.0              2.0

                                        Actual        Target     Est. Act.       Target                  Fire Marshal ***                                      1.0            1.0              0.0
                                         FY09          FY10         FY10          FY11                   Construction Inspection
                                                                                                                                                               0.0            0.0              1.0
Maintain the two-day response                                                  14,250 /                  Supervisor ***
to inspection requests at or                N/A          N/A           N/A      15,000                   Zoning Inspector II ****                              1.0            0.0              0.0
above 95% *                                                                     or 95%
                                                                                                         Cost Center Total                                   11.0             8.0              8.0
                                                                                1,600 /              *    All levels of the Fire Codes Inspector (I-II) and Construction Codes Inspector (I-II)
Reduce the number of
                                            N/A          N/A           N/A      10,000                    positions are banded and can be hired at any level.
re-inspections by 10% *
                                                                                or 16%               ** The Construction Codes Specialist and Fire Protection Engineer positions moved to
                                                                                                          the Application, Processing, & Permit Issuance cost center within the Inspection
*   This was a new Performance Measure in FY10 and a formalized method to measure it
                                                                                                          Services Division in FY10.
    was not developed until mid-year FY10 so the first full-year of data will be in FY11.
                                                                                                     *** The Fire Marshal moved to the Application, Processing and Permit Issuance cost
                                                                                                          center and the Construction Inspection Supervisor moved from the Application,
                                                                                                          Processing and Permit Issuance cost center in FY11.
                                                                                                     **** Zoning Inspector II position moved to the Planning Division in FY10.




                                                                                            8 - 21
          Department of Community Planning and Development Services
                                                                              Division: Housing

Division: Housing
                                    Actual       Adopted        Est. Act.      Adopted                                           Actual     Adopted     Est. Act.     Adopted
                                     FY09           FY10           FY10           FY11                                            FY09         FY10        FY10          FY11
Division Expenditures                                                                                 Source of
by Cost Center                                                                                        Division Funds
Administration and                                                                                    Departmental Revenue
                                  471,480        438,300        417,390        366,470
 Support                                                                                              CDBG Grant (360) *       292,501      608,000     305,000       614,348
Housing                           214,691        129,600        129,950        175,160                  Subtotal              $292,501     $608,000    $305,000      $614,348
CDBG (360) *                      292,501        608,000        305,000        614,348                Fund Contribution
Division Total                   $978,672     $1,175,900       $852,340     $1,155,978                General Fund (110)       686,171       567,900    547,340        541,630
                                                                                                      Subtotal                $686,171      $567,900   $547,340      $541,630
                                                                                                      Division Total          $978,672    $1,175,900   $852,340     $1,155,978
                                    Actual       Adopted        Est. Act.      Adopted
                                     FY09           FY10           FY10           FY11
Division Expenditures                                                                                                            Actual     Adopted     Est. Act.     Adopted
by Type                                                                                                                           FY09         FY10        FY10          FY11
Salary and Wages                  485,633        428,700        457,680        462,480                Staffing Summary
Benefits                           98,689         82,500        100,800        109,290                by Cost Center (FTEs)
Overtime                            3,081          1,500          2,100          1,500                Regular
  Personnel Subtotal             $587,403       $512,700       $560,580      $573,270                 Administration and
                                                                                                                                    5.0          4.0         4.0           3.0
Contractual Services              374,073        643,600        272,900        522,408                 Support
Commodities                        17,196         19,600         18,860         19,100                Housing                       1.1          1.4         1.4           1.4
Capital Outlays                         0              0              0              0                CDBG (360)                    0.9          0.6         0.6           0.6
Other                                   0              0              0         41,200                Regular Subtotal              7.0          6.0         6.0           5.0
  Operating Subtotal             $391,269       $663,200       $291,760      $582,708                 Temporary
Division Total                   $978,672     $1,175,900       $852,340     $1,155,978                Administration and            0.4          0.2         0.2           0.1
                                                                                                       Support
*   Actual FY09 and Est. Act. FY10 represent one fiscal year, while Adopted FY10 and                    Temporary Subtotal          0.4          0.2         0.2           0.1
    Adopted FY11 represent the current fiscal year plus the prior year’s appropriations or
    estimated expenditures.                                                                           Division Total                7.4          6.2         6.2           5.1




                                                                                             8 - 22
          Department of Community Planning and Development Services
                                                                        Division: Housing

                                                                                               grant award in FY11 and reductions in travel, training, dues and publication
Division: Housing                                                                              expenditures. Other expenditures increased by $41,200 because funding for the
                                                                                               outside agency, Rockville Housing Enterprises (RHE) was moved from Non-
Division Purpose:
                                                                                               Departmental to CPDS.
The Housing Division has two different responsibilities. It acts as the office
manager of the Department of Community Planning and Development Services                                 Cost Center: Administration and Support
by administering the Department budget and procurement processes to ensure
that the staff has adequate resources to perform their jobs. Management and
Support staff orders the goods and services required to operate the other                      Cost Center Summary:
divisions and ensure that invoices are paid correctly. The Division also provides
                                                                                                                                Actual         Adopted       Est. Act.     Adopted
administrative staff support to the other divisions and operates the permit plan
                                                                                                                                 FY09             FY10          FY10          FY11
and information services functions of the Department to facilitate computerized
development review, building code enforcement and record keeping. The                           Total Expenditures          471,480            438,300       417,390        366,470
Division name was changed from Management and Support to the Housing                            Total Revenues                    N/A              N/A            N/A           N/A
Division in FY11.

The Division also initiates, coordinates, and supports low and moderate income                 Objectives:
housing programs within the City. It operates the City’s successful Moderately
Priced Dwelling Unit (MPDU) program, provides liaison and technical support to
                                                                                                   •   Improve the efficiency of CPDS administration through training,
Rockville Housing Enterprises, the City’s Housing Authority, and administers the
                                                                                                       identification and use of “best practices” from literature, networking,
Community Development Block (CDBG) program.
                                                                                                       conferences, and site visits
This Division also works closely with the Montgomery County Department of                          •   Monitor CPDS budget expenditures to ensure correct allocations of
Housing and Community Assistance, Rockville Housing Enterprises and various                            funds against each cost center
non-profit housing providers and neighborhood associations to facilitate                           •   Create an improved records creation and retention system for both
affordable housing.                                                                                    paper and computerized files in accordance with the requirements of the
                                                                                                       State of Maryland
Significant Changes:
                                                                                               Performance Measures:
Adopted FY10 to Estimated Actual FY10
Personnel expenditures increased by a net $47,900 mainly due to the reduction                                                       Actual         Target     Est. Act.     Target
of $20,000 in savings from the vacant Administrative II position to fund additional                                                  FY09           FY10         FY10        FY11
snow and ice removal and the addition of $60,000 in personnel expenditures
related to the CDBG grant from contractual services expenditures. Contractual
                                                                                                Maintain overall variance          4.9 mil /     4.6 mil /     4.2 mil /   4.7 mil /
services expenditures decreased by $370,700 mainly due to the transfer of
                                                                                                within 5% of the Department’s       5.5 mil        4.6 mil      4.6 mil      4.7 mil
$60,000 to personnel expenditures and only half of the budgeted multi-year
                                                                                                adopted budget                      or 89%       or 100%        or 91%     or 100%
CDBG grant being expended in FY10.

Estimated Actual FY10 to Adopted FY11
Personnel expenditures increased by a net $12,700 due to the budgeting of
CDBG personnel expenditures for two grants (Year 34 and 35), the elimination of
a vacant Administrative Assistant II position, and an increase in benefit costs.
Contractual services expenditures increased by $249,500 due to the new CDBG
                                                                                      8 - 23
             Department of Community Planning and Development Services
                                                                                     Division: Housing

Workload Measures                                                                                        Objectives:

                                            Actual     Estimate       Est.Act.       Estimate                   •    Explore and implement programs to produce and/or retain affordable
                                             FY09          FY10          FY10            FY11                        housing options within the City of Rockville in order to constantly
    Number of CPDS staff trained in                                                                                  improve and update the City’s programs
                                                 28            40           11            30
    the use of permit plan                                                                                      •    Review the City’s current affordable housing policies in order to update
                                                                                                                     their applicability to present conditions
    Number of Permit Plan training
                                                N/A             7                5         7                    •    Re-evaluate the MPDU Ordinance and procedures to reflect current real
    classes offered *
                                                                                                                     estate market conditions
    Number of training classes
    attended by Management and                     6           10                9         5
                                                                                                         Performance Measures:
    Support Division support staff *
    Number of boxes shipped to
                                                N/A            150               0        75                                                         Actual      Target     Est. Act.      Target
    archives
                                                                                                                                                      FY09        FY10         FY10         FY11
*      This was a new Workload Measure in FY10.
                                                                                                             Increase the percent of Citizen
Regular Positions:                                                                                           Survey respondents rating the
                                                                                                             access to quality affordable
                                                                                                                                                        33%        33%           33%          40%
                                                  Adopted         Adopted            Adopted                 housing in Rockville as
    Position Title
                                                     FY09            FY10               FY11                 “excellent” or “good” to 40
                                                                                                             percent *
    Community Development Program
                                                         1.0              1.0             1.0
    Manager                                                                                                  Maintain the number of days to
                                                                                                             process MPDU applications at 5          5 days      5 days       5 days        5 days
    Permit Software Support Specialist                   1.0              1.0             1.0
                                                                                                             days
    Administrative Assistant II *                        1.0             1.0              0.0
                                                                                                         *      The City conducts a citizen survey every other year. A survey was conducted in FY09
    Secretary III                                        1.0              1.0             1.0                   and the next survey will take place in FY11.
    Secretary II                                         1.0              0.0             0.0
                                                                                                         Workload Measures:
    Cost Center Total                                    5.0              4.0             3.0
*     The vacant Administrative Assistant II position was eliminated in FY11.                                                                    Actual     Estimate      Est. Act.     Estimate
                                                                                                                                                  FY09          FY10         FY10           FY11
                             Cost Center: Housing                                                            Number of MPDU
                                                                                                                                                     275          300           455          400
                                                                                                             applications received
Cost Center Summary:                                                                                         Number of MPDU
                                                                                                                                                        0            0             0            1
                                                                                                             agreements with builders
                                     Actual        Adopted           Est. Act.       Adopted
                                                                                                             Number of MPDU
                                      FY09            FY10              FY10            FY11                                                         250          225           448          350
                                                                                                             certificates issued
Total Expenditures                  214,691         129,600          129,950          175,160
Total Revenues                           N/A             N/A              N/A            N/A



                                                                                                8 - 24
             Department of Community Planning and Development Services
                                                                                Division: Housing

Regular Positions:
                                                                                                           Cost Center: Community Development Block Grant
                                                      Adopted      Adopted       Adopted
    Position Title
                                                         FY09         FY10          FY11                Cost Center Summary:
    CPDS Administrator                                     1.0          1.0           1.0
    Rehabilitation Specialist *                             0.1          0.4            0.4                                           Actual      Adopted       Est. Act.    Adopted
                                                                                                                                       FY09          FY10          FY10         FY11
    Cost Center Total                                       1.1          1.4            1.4
                                                                                                        Total Expenditures           292,501       608,000       305,000      614,348
*      The Rehabilitation Specialist position is supported by the General Fund (40%) and the
       Community Development Block Grant Fund (60%).                                                    Total Revenues               292,501       608,000       305,000      614,348

                                                                                                        Objectives:
Supplemental Information:

               Affordable Housing Units within the City of Rockville                                        •   Submit and administer the Federal Community Development Block
                                                                                                                Grant (CDBG) to ensure the City’s application is prepared and
                        Affordable Housing Type                    FY 2010                                      submitted and all funded programs meet Federal CDBG eligibility
                                                                                                                criteria and the needs of City residents
               MDPU (rental and home-ownership)                          808
                                                                                                            •   Provide resources to Rockville Housing Enterprises in order to maintain
               Assisted Elderly                                          481                                    affordable and safe public housing within the City
               Workforce Housing                                           49                               •   Provide rehabilitation assistance to homeowners through the City
               Mixed Income (rental)                                       60                                   Rehabilitation Program and the Community Ministries Safe and
                                                                                                                Habitable Home program to ensure all City residents’ homes meet
               Housing Choice Vouchers (section 8)                       487                                    minimum code standards
               Tax-Exempt Financed (<60% AMI)                            190
                                                                                                        Performance Measures:
               Affordable Home-ownership                                   40
               Scattered Site Public Housing                               26                                                           Actual        Target     Est. Act.      Target
                                                                                                                                         FY09          FY10         FY10         FY11
               Conventional Public Housing                                 76
                                                                                                         Maintain the percent of
               Total                                                   2,217                                                           Year 32      Year 33      Year 33      Year 34
                                                                                                         the CDBG grant ending
                                                                                                                                      429,167 /    232,724 /    310,299 /    244,011 /
                                                                                                         during the fiscal year
                                                                                                                                       510,987      310,299      310,299      325,348
Each fiscal year, the City awards funding to outside agencies that provide                               expended at 75% or
                                                                                                                                        or 84%       or 75%      or 100%       or 75%
services to the residents of Rockville through a competitive application review                          greater *
process. Such funding for the Rockville Housing Enterprise (RHE), which is the                           Maintain at least 50
City’s public housing agency, is included in the Housing Division’s budget in                            houses brought up to
                                                                                                                                             48           50           50           50
FY11. RHE provides housing opportunities for lower income households who                                 code standards with
are unable to rent or buy homes and initiates redevelopment activities. The                              CDBG
$41,200 in funding for this organization was moved from Non-Departmental to
the Housing cost center in FY11.                                                                         Rehabilitate 100% of the
                                                                                                                                        30 / 30      30 / 30      20 / 20      18 / 18
.                                                                                                        public housing units
                                                                                                                                       or 100%      or 100%      or 100%      or 100%
                                                                                                         funded by the CDBG grant


                                                                                               8 - 25
             Department of Community Planning and Development Services
                                                                                Division: Housing

                                        Actual        Target       Est. Act.        Target              Approved CDBG Projects
                                         FY09          FY10           FY10           FY11                                            Year 32     Year 33    Year 34    Year 35*    Year 36
                                                                                                                                   (ended in   (ended in    (ending    (ending     (ending
    Maintain the number of                                                                              Project                       FY09)       FY10)       FY11)      FY12)       FY13)
                                          8/8            7/7           7/7            6/6
    CDBG managed projects                                                                               Community Ministries
                                      or 100%        or 100%       or 100%        or 100%
    completed at 100%                                                                                   Latino Outreach/
                                                                                                        Naturalization              $15,000     $20,000     $15,000    $16,000     $16,000
    Achieve a rate of 25% for                                                                           Community Ministries
    the number of code                                 8 / 32           2/7          5 / 20             Safe and Habitable
                                           N/A
    enforcement referrals that                        or 25%         or 29%         or 25%              Home                        $12,500          $0          $0          $0         $0
    lead to CDBG assistance                                                                             Elderly Ministries               $0     $12,500     $12,500     $12,500    $12,500
*      The CDBG grant is awarded over an 18 month period and spans two of the City’s                    Rockville Housing
       fiscal years. See the ‘Approved CDBG Projects’ table for additional details.                     Enterprises Resident
                                                                                                        Counselor                   $24,500     $24,500     $25,000          $0         $0
Workload Measures:                                                                                      Interfaith Works                 $0          $0     $10,000          $0         $0
                                                                                                        Top Banana Elderly
                                                                                                        Grocery Delivery             $5,000      $5,000         $0           $0         $0
                                         Actual      Estimate      Est. Act.     Estimate
                                          FY09           FY10         FY10           FY11
                                                                                                        Mobile Med Healthcare       $12,500          $0         $0           $0         $0
Number of requisitions                                                                                  Korean Community
submitted to Montgomery                          4            4             3             8             Service Center                   $0          $0         $0           $0     $5,000
County
                                                                                                        Stepping Stones Shelter          $0          $0         $0     $12,500          $0
Number of grantee                                                                                       Rockville Housing
                                                 0          20              6             8
compliance site visits                                                                                  Enterprises Public
                                                                                                        Housing Renovation               $0     $34,000     $35,000    $70,000     $70,000
Number of RHE site visits                     12            10             11            10
                                                                                                        City of Rockville Single
Number of rehabilitation                                                                                Family Rehabilitation      $381,487    $154,299    $170,128   $118,000    $140,500
                                              40            45             40            40
program applications                                                                                    CDBG Administration         $60,000     $60,000     $57,720    $60,000     $60,000
                                                                                                        Total                      $510,987    $310,299    $325,348   $289,000    $304,000
Regular Positions:                                                                                      * Note: Funding for the Rockville Presbyterian Church and Manna Food projects was
                                                                                                          removed from the City’s Year 35 grant between the FY11 proposed budget and FY11
                                                      Adopted      Adopted       Adopted                  adopted budget because Montgomery County decided to directly fund these projects.
    Position Title
                                                         FY09         FY10          FY11
                                                                                                        Supplemental Information:
    Rehabilitation Specialist *                             0.9          0.6            0.6
                                                                                                        Currently the City’s CDBG grant is administered by Montgomery County. If the
    Cost Center Total                                       0.9          0.6            0.6             City of Rockville’s official population count exceeds 50,000 in the Nation’s next
*      The Rehabilitation Specialist position is supported by the General Fund (40%) and the            census (starting April 2010) the City could become an Entitlement Community.
       Community Development Block Grant Fund (60%).                                                    As an Entitlement Community the City could receive the CDBG grant directly
                                                                                                        from the Federal government. Based on the census data, to be published in the
                                                                                                        Spring of 2011, the City will have to prepare an analysis to determine if the
                                                                                                        benefits received as an Entitlement Community equal or exceed the additional
                                                                                                        resources that will be needed to administer the CDBG program as an Entitlement
                                                                                                        Community.
                                                                                               8 - 26
                                                          Department of Finance
                                                                                                            Department Mission Statement
                             Department of Finance
                                                                                     The Department of Finance maintains the City's high standard of financial
                                                                                     excellence by providing the citizens, employees, and vendors with professional
                                                                                     customer service through the collection and disbursement of funds, financial
                                    Administration                                   reporting, and management of assets.


                                                                                                                   Expenditures History
                                                                                    $4,000,000
            Accounting and Control                        Revenue
                                                                                    $3,500,000


               Purchasing and                                                       $3,000,000
                                                           Budget
                 Stockroom
                                                                                    $2,500,000


                                                                                    $2,000,000
                                    Staffing Trend
       35
                                                                                    $1,500,000
                                               Total
       30                                                                                          Actual        Actual          Actual     Est. Act.    Adopted
                                               Regular                                             FY07          FY08            FY09        FY10         FY11
       25
       20
FTEs




       15                                                                                                           Use of Funds
       10                                                                                        Accounting
        5                                                                                        and Control
                                            Temporary                                                                                        Revenue
                                                                                                    35%
        0                                                                                                                                      26%
               Actual      Actual         Actual       Est. Act.    Adopted
               FY07        FY08           FY09          FY10         FY11




                                                                                                     Budget
                                                                                                      10%                                 Purchasing &
                                                                                                                                           Stockroom
                                                                                                                Administration                17%
                                                                                                                    12%



                                                                              9-1
                                                     Department of Finance
                                                                 Department Summary

Department Summary
                             Actual     Adopted      Est. Act.     Adopted                                       Actual     Adopted      Est. Act.     Adopted
                              FY09         FY10         FY10          FY11                                        FY09         FY10         FY10          FY11
Dept. Expenditures                                                                  Source of
by Division                                                                         Dept. Funds
Administration              396,329      403,400      469,424       404,590         Departmental Revenue             0            0            0             0
Accounting and Control      837,077    1,113,700    1,203,648     1,183,480           Subtotal                      $0           $0           $0            $0
Revenue                     764,551      858,100      866,909       869,910         Fund Contribution
Purchasing / Stockroom      525,090      563,400      565,990       579,800         General Fund (110)        2,080,816    2,423,400    2,588,816     2,525,230
Budget                      291,248      310,100      305,337       323,520         Water (210)                 733,479      825,300      822,492       836,070
Department Total         $2,814,295   $3,248,700   $3,411,308    $3,361,300           Subtotal               $2,814,295   $3,248,700   $3,411,308    $3,361,300
                                                                                    Department Total         $2,814,295   $3,248,700   $3,411,308    $3,361,300
                             Actual     Adopted      Est. Act.     Adopted
                              FY09         FY10         FY10          FY11                                       Actual     Adopted      Est. Act.     Adopted
Dept. Expenditures                                                                                                FY09         FY10         FY10          FY11
by Type                                                                             Staffing Summary
Salary and Wages          1,957,085    2,134,700    2,172,325     2,181,660         by Division (FTEs)
Benefits                    456,234      484,300      505,987       603,860         Regular
Overtime                      3,761        5,000       14,000         5,000         Administration                  2.0          2.0          2.0           2.0
  Personnel Subtotal     $2,417,080   $2,624,000   $2,692,312    $2,790,520         Accounting and Control         10.0         10.0         10.0          10.0
Contractual Services        280,918      410,700      567,867       441,100         Revenue                         9.0          9.0          9.0           9.0
Commodities                  27,316       21,000       19,509        16,780         Purchasing / Stockroom          6.0          6.0          6.0           6.0
Capital Outlays              88,981      150,000       96,000        67,000         Budget                          3.0          3.0          3.0           3.0
Other                             0       43,000       35,620        45,900           Regular Subtotal             30.0         30.0         30.0          30.0
  Operating Subtotal       $397,215     $624,700     $718,996      $570,780         Temporary
Department Total         $2,814,295   $3,248,700   $3,411,308    $3,361,300         Administration                  0.1          0.0          0.0           0.0
                                                                                      Temporary Subtotal            0.1          0.0          0.0           0.0
                                                                                    Department Total               30.1         30.0         30.0          30.0




                                                                              9-2
                                                             Department of Finance
                                                                      Department Summary

                                                                                          Significant Changes:
Department Summary
                                                                                          Adopted FY10 to Estimated Actual FY10
Department Overview:                                                                      Personnel expenditures increased by $68,300 due to increases in salary costs
                                                                                          resulting from actual salaries being higher than originally budgeted for FY10,
The Department of Finance assists City departments in meeting their service               increases in benefit costs, and Revenue Division overtime. Contractual services
objectives by acquiring goods and services, allocating and tracking the City’s            expenditures increased by $157,200 due to the addition of purchase orders that
financial resources, processing financial transactions, and providing information         carried over from FY09, a transfer within the Revenue Division from capital
and analysis as a basis for decision making. The Department bills and/or                  outlay, and decreases in contractual services expenditures that offset decreased
collects revenue and provides assistance to taxpayers and utility customers. The          revenue projections during FY10. Capital outlay expenditures decreased by
Department also secures financing for capital construction and safeguards and             $54,000 due to a transfer within the Revenue Division. Other expenditures
invests City funds.                                                                       decreased by $7,400 to offset decreased revenue projections during FY10.
Objectives:                                                                               Estimated Actual FY10 to Adopted FY11
                                                                                          Personnel expenditures increased by $98,200 mainly due to an increase in
         Promote a high level of public trust in financial transactions                   benefit costs. Contractual services expenditures decreased by $126,800 due to
         Maintain City’s financial health and stability                                   the removal of one-time consultant fees, and the transfer in of funding for the
                                                                                          City’s tax processing payment to Montgomery County from Non-Departmental.
         Ensure financial accountability across the organization
                                                                                          Capital outlay expenditures decreased by $29,000 due to a reduction in water
         Manage resources professionally                                                  meter purchases. Other expenditures increased by $10,300 due to the transfer
         Provide equitable and ethical service to all customers                           in of funding for the Rockville Fire Department’s water bills from Non-
                                                                                          Departmental.
         Promote superior customer service to all customers




                                                                                    9-3
                                               Department of Finance
                                                      Division: Administration

Division: Administration
                           Actual    Adopted    Est. Act.    Adopted                                    Actual    Adopted    Est. Act.    Adopted
                            FY09        FY10       FY10         FY11                                     FY09        FY10       FY10         FY11
Division Expenditures                                                        Source of
by Cost Center                                                               Division Funds
Administration           396,329     403,400    469,424      404,590         Departmental Revenue          0           0           0           0
Division Total          $396,329    $403,400   $469,424     $404,590           Subtotal                   $0          $0          $0          $0
                                                                             Fund Contribution
                           Actual    Adopted    Est. Act.    Adopted         General Fund (110)       396,329     403,400    469,424      404,590
                            FY09        FY10       FY10         FY11           Subtotal              $396,329    $403,400   $469,424     $404,590
Division Expenditures                                                        Division Total          $396,329    $403,400   $469,424     $404,590
by Type
Salary and Wages         236,414     240,000    238,000      237,330
Benefits                  50,056      54,800     53,223       60,060                                    Actual    Adopted    Est. Act.    Adopted
Overtime                       0           0          0            0                                     FY09        FY10       FY10         FY11
  Personnel Subtotal    $286,470    $294,800   $291,223     $297,390         Staffing Summary
Contractual Services     102,696     100,100    173,065       92,200         by Cost Center (FTEs)
Commodities                7,163       8,500      5,136        5,000         Regular
Capital Outlays                0           0          0            0         Administration                2.0        2.0         2.0         2.0
Other                          0           0          0       10,000           Regular Subtotal            2.0        2.0         2.0         2.0
  Operating Subtotal    $109,859    $108,600   $178,201     $107,200         Temporary
Division Total          $396,329    $403,400   $469,424     $404,590         Administration                0.1        0.0         0.0         0.0
                                                                               Temporary Subtotal          0.1        0.0         0.0         0.0
                                                                             Division Total                2.1        2.0         2.0         2.0




                                                                       9-4
                                                          Department of Finance
                                                                 Division: Administration

Division: Administration                                                                             Promote superior customer service among Finance Department staff

Division Purpose:                                                                         Performance Measures:

The Administration Division is responsible for developing financial management                                                  Actual        Target     Est. Act.     Target
policies and strategies that promote the City’s financial integrity. The division                                                FY09          FY10         FY10        FY11
develops equitable taxation systems and usage fees; maximizes the return on                   Maintain the General Fund
                                                                                                                               $13.61 /       $9.31 /     $11.86 /     $9.32 /
City investments at minimal risk; maintains banking relations; plans and executes             fund balance at or above
                                                                                                                                $61.84        $62.08       $62.08      $62.10
bond sales; and provides internal control oversight. The Chief Financial Officer              15% of adopted revenues
                                                                                                                              or 22.0%      or 15.0%     or 19.1%    or 15.0%
serves as the Executive Secretary to the Retirement Board.                                    (figures shown in millions)
Significant Changes:                                                                          Maintain the investment
                                                                                                                                1.18% /       1.2% /      0.10% /     0.20% /
                                                                                              interest rate earned as a %
Adopted FY10 to Estimated Actual FY10                                                                                            0.47%          1.0%       0.12%       0.19%
                                                                                              of the 3-month treasury-bill
                                                                                                                               or 253%      or 120%       or 83%     or 105%
Contractual services expenditures increased by a net total of $73,000 due to the              at or above 105%
addition of purchase orders that carried over from FY09.                                      Maintain the City’s bond           AAA /         AAA /        AAA /       AAA /
Estimated Actual FY10 to Adopted FY11                                                         rating at AAA / Aaa                 Aaa           Aaa          Aaa         Aaa
Personnel expenditures increased by $6,200 due to increases in benefit costs.                 Increase the percentage of
Contractual services expenditures decreased by $80,900 due to the removal of a                employees satisfied with        213 / 288    213 / 288    213 / 288    219 / 288
one-time consultant fee for the Cost Allocation Plan and User Fee Study. Other                overall customer service to       or 74%       or 74%       or 74%       or 76%
expenditures increased by $10,000, which was transferred in from Non-                         76%*
Departmental to cover water bills for the Rockville Volunteer Fire Department.            *      The City conducts an employee survey. An employee survey was performed in FY08
                                                                                                 and the next survey will take place in FY11.
                     Cost Center: Administration
                                                                                          Workload Measures:
Cost Center Summary:
                                                                                                                                Actual     Estimate      Est. Act.   Estimate
                                Actual     Adopted        Est. Act.    Adopted                                                   FY09          FY10         FY10         FY11
                                 FY09         FY10           FY10         FY11                Bond sales executed                   1             1             0           1
Total Expenditures             396,329      403,400       469,424       404,590
                                                                                          Regular Positions:
Total Revenues                     N/A           N/A           N/A           N/A
                                                                                                                                          Adopted       Adopted      Adopted
                                                                                              Position Title
Objectives:                                                                                                                                  FY09          FY10         FY11
                                                                                              Chief Financial Officer                          1.0           1.0          1.0
         Recommend and implement sound financial policies, practices, and
         procedures to ensure the long-tem financial health of the City                       Administrative Assistant                         1.0           1.0          1.0
         Carefully monitor cash flow needs with the goal of maximizing interest               Cost Center Total                                2.0           2.0          2.0
         income while maintaining a safe and liquid investment portfolio
         Provide sound debt administration and management in order to                     Supplemental Information:
         maintain the City’s AAA / Aaa bond rating resulting in lower borrowing           Each fiscal year, the City awards funding to outside agencies that provide
         costs for the City                                                               services to the residents of Rockville through a competitive application review
         Closely monitor the impact of economic conditions on major revenue               process. Such funding totaling $10,000 for the Rockville Volunteer Fire
         sources and the City’s overall cash flow needs to ensure the timely              Department, which consists of over 200 members serving the Rockville area, is
         payment of vendor disbursements and payroll checks                               included in the Finance Administration Division’s budget for FY11.
                                                                                    9-5
                                                                  Department of Finance
                                                                 Division: Accounting and Control

Division: Accounting and Control
                                     Actual       Adopted         Est. Act.     Adopted                                     Actual     Adopted      Est. Act.     Adopted
                                      FY09           FY10            FY10          FY11                                      FY09         FY10         FY10          FY11
Division Expenditures                                                                            Source of
by Cost Center                                                                                   Division Funds
Accounting and Audit*              837,077        683,400         710,977       742,250          Departmental Revenue          0             0            0             0
Systems Support and                                                                                Subtotal                   $0            $0           $0            $0
  Control*                              N/A       430,300         492,671       441,230
                                                                                                 Fund Contribution
Division Total                   $837,077      $1,113,700     $1,203,648      $1,183,480         General Fund (110)       837,077     1,113,700    1,203,648     1,183,480
                                                                                                   Subtotal              $837,077    $1,113,700   $1,203,648    $1,183,480
                                     Actual       Adopted         Est. Act.     Adopted          Division Total          $837,077    $1,113,700   $1,203,648    $1,183,480
                                      FY09           FY10            FY10          FY11
Division Expenditures
by Type                                                                                                                     Actual     Adopted      Est. Act.     Adopted
Salary and Wages                  608,649         716,800        752,425         749,780                                     FY09         FY10         FY10          FY11
Benefits                          126,684         147,600        159,768         191,120         Staffing Summary
Overtime                                0               0              0               0         by Cost Center (FTEs)
  Personnel Subtotal             $735,333        $864,400      $912,193         $940,900         Regular
Contractual Services               84,350         215,800        258,655         209,280         Accounting and Audit*       10.0           8.0          8.0           8.0
Commodities                         6,456           5,500          4,800           5,300         Systems Support and
                                                                                                                              N/A           2.0          2.0           2.0
Capital Outlays                    10,938               0              0               0           Control*
Other                                   0          28,000         28,000          28,000           Regular Subtotal          10.0          10.0         10.0          10.0
  Operating Subtotal             $101,744        $249,300      $291,455         $242,580         Temporary
Division Total                   $837,077      $1,113,700     $1,203,648      $1,183,480           Temporary Subtotal         0.0           0.0          0.0           0.0
*   In FY10, the Accounting Division was split into two cost centers.                            Division Total              10.0          10.0         10.0          10.0




                                                                                           9-6
                                                            Department of Finance
                                                           Division: Accounting and Control

Division: Accounting and Control                                                                           Cost Center: Accounting and Audit
Division Purpose:                                                                            Cost Center Summary:
The Accounting and Control Division provides timely and accurate accounting                                                 Actual      Adopted        Est. Act.     Adopted
and internal control services for the City. This division provides professional and                                          FY09          FY10           FY10          FY11
consistent financial services to all City departments through accounts payable,
payroll processing, accounting services, systems support, and internal controls.             Total Expenditures            837,077       683,400        710,977       742,250
This division oversees and reports on a timely and accurate basis all financial              Total Revenues                     N/A           N/A           N/A            N/A
results of City operations through the City’s annual financial report. This division
is responsible for overseeing the implementation of system upgrades, security
administration and maintenance of multiple financial systems. In addition, this
                                                                                             Objectives:
division maintains the City’s pension and deferred compensation programs,
prepares and oversees accurate input of the City’s actuarial reports, and                            Oversee and report on a timely and accurate basis all financial results of
performs timely pension benefit calculations.                                                        City operations through the City’s Comprehensive Annual Financial
                                                                                                     Report (CAFR)
Significant Changes:
                                                                                                     Maintain compliance with Generally Accepted Accounting Principles
Adopted FY10 to Estimated Actual FY10                                                                (GAAP) with the goal of receiving the Government Finance Officers
                                                                                                     Association (GFOA) certificate for Achievement of Excellence in
Personnel expenditures increased by $47,800 due to actual salary costs being
higher than budgeted for FY10, and increased benefit costs. Contractual                              Financial Reporting and obtaining an unqualified audit opinion
services expenditures increased by a net total of $42,900 due to the addition of                     Successfully implement components of the required Government
$77,100 in purchase orders that carried over from FY09, a total of $23,400 in                        Accounting Standards Board (GASB) statements each year to remain in
commodity expenditures that were reduced to offset decreased revenue                                 compliance with GAAP
projections during FY10, and a transfer of $10,800 to the Administration cost                        Conduct periodic internal financial and operational reviews to ensure
center for auditing services.                                                                        financial efficiencies and operational control
Estimated Actual FY10 to Adopted FY11                                                                Ensure the accuracy of vendor disbursement and payroll checks to
                                                                                                     guarantee timely payments and promote internal and external customer
Personnel expenditures increased by $28,700 mainly due to an increase in
benefit costs. Contractual services expenditures decreased by $49,400 due to                         service
the removal of a one-time consultant fee for the financial system upgrade and the                    Promote the use of payroll direct deposit and other electronic payments
transfer in of funding for the City’s tax processing payment to Montgomery                           in order to promote internal customer service, improve efficiency and
County from Non-Departmental.                                                                        decrease the risk of fraud
.




                                                                                       9-7
                                                                  Department of Finance
                                                                 Division: Accounting and Control

Performance Measures:                                                                               Regular Positions:

                                        Actual        Target       Est. Act.        Target                                                             Adopted         Adopted    Adopted
                                                                                                        Position Title
                                         FY09          FY10           FY10           FY11                                                                 FY09            FY10       FY11
    Receive GFOA certificate                                                                            Financial Systems Manager *                         1.0             0.0        0.0
    for Achievement of                                                                                  Financial Systems Sr. Support Analyst *             1.0             0.0        0.0
    Excellence in Financial              Yes            Yes            Yes            Yes               Financial Accounting Manager                        1.0             1.0        1.0
    Reporting for CAFR each          20 Years       21 Years       21 Years       22 Years              Senior Accountant                                   1.0             1.0        1.0
    year (shown in
    consecutive years)                                                                                  Accountant                                          1.0             1.0        1.0
                                                                                                        Accounts Payable Assistant I                        1.0             1.0        1.0
    Receive an unqualified                                                                              Accounts Payable Assistant II                       1.0             1.0        1.0
                                           Yes            Yes           Yes            Yes
    audit opinion each year
                                                                                                        Payroll Supervisor                                  1.0             1.0        1.0
    Successfully implement                                                                              Payroll Assistant I                                 1.0             1.0        1.0
                                          2/2                                        1 / 1*
    100% of required GASB                                0/0            0/0
                                         100%                                        100%               Payroll Assistant II                                1.0             1.0        1.0
    statements
                                                                                                        Cost Center Total                                   10.0            8.0        8.0
    Increase the percent of
    internal financial and             58 / 80        64 / 85        68 / 85        68 / 85         *      Moved to Systems Support and Control cost center in FY10.
    operational reviews in             or 73%         or 75%         or 80%         or 80%
    compliance by 5%                                                                                Supplemental Information:

    Maintain the number of                                                                          The Comprehensive Annual Financial Report (CAFR) is an annual financial
    voided payroll checks due         17 voids        0 voids        2 voids        0 voids         report that is prepared by Finance in accordance the generally accepted
    to payroll error at zero                                                                        accounting principles (GAAP). A CAFR has three major sections: introductory,
                                                                                                    financial, and statistical and is audited in accordance with generally accepted
    Maintain the number of
                                                                                                    auditing standards (GAAS) by a firm of certified public accountants (CPA). The
    voided vendor
                                                                                                    report is management’s representation of finances and is audited by the
    disbursement checks due            6 voids        0 voids        4 voids        0 voids
                                                                                                    independent CPA firm of Reznick Group, PC. The City of Rockville’s most recent
    to accounts payable error
                                                                                                    CAFR can be found at http://www.rockvillemd.gov/government/cafr/index.html
    at zero
*      In March 2009 the Governmental Accounting Standards Board (GASB) released                    The content and format of the CAFR is strictly prescribed, and many people have
       GASB statement number 54, which makes changes to fund balance reporting and                  a difficult time understanding the contents of the CAFR. In order to make the
       governmental fund type definitions. This statement must be implemented for financial         financial information that is presented in the CAFR easier to read and
       statements beginning after June 2010, which is the City’s fiscal year 2011.                  understand, staff created the Popular Financial Annual Report (PAFR). The
                                                                                                    PAFR is not required to comply with GAAP, and provides summary information
                                                                                                    based on the numbers presented in the annual CAFR and the operating budget.




                                                                                              9-8
                                                            Department of Finance
                                                            Division: Accounting and Control

                                                                                                                                      Actual         Target     Est. Act.        Target
         Cost Center: Systems Support and Control                                                                                      FY09           FY10         FY10           FY11
                                                                                                 Maintain the percent of
Cost Center Summary:
                                                                                                 system upgrades                         1/3           2/2           2/2           1/1
                                                                                                 successfully completed at            or 33%       or 100%       or 100%       or 100%
                                 Actual       Adopted       Est. Act.       Adopted              100%
                                  FY09           FY10          FY10            FY11
                                                                                                 Respond to 100% of human
Total Expenditures                 N/A        430,300       492,671         441,230
                                                                                                 resources and financial           495 / 495      300 / 300     606 / 606     450 / 450
Total Revenues                     N/A            N/A            N/A            N/A              system help desk calls             or 100%        or 100%       or 100%       or 100%
                                                                                                 within a 48 hour period *
                                                                                             *      The increase in calls in FY09 was due to an increased number of users as a result of
Objectives:                                                                                         an increase in the number of new systems.

        Implement automated processes and systems Citywide with the goal of                  Regular Positions:
        improving overall efficiencies
        Provide resources and training on all financial and human resources                                                                      Adopted        Adopted       Adopted
                                                                                                 Position Title
        applications to increase user knowledge and usage                                                                                           FY09           FY10          FY11
        Manage system upgrades to keep the City current with the most recent                     Financial Systems Manager *                           N/A            1.0            1.0
        technologies                                                                             Financial Systems Sr. Support Analyst *               N/A            1.0            1.0
        Support all system users through the Information and Technology help                     Cost Center Total                                     N/A            2.0            2.0
        desk to increase user knowledge and troubleshoot problems with the
                                                                                             *      Moved from the Accounting and Audit cost center in FY10.
        system
                                                                                             Supplemental Information:
Performance Measures:
                                                                                             The Systems Support and Control cost center provides timely and accurate
                                    Actual       Target      Est. Act.        Target         systems support and internal control services to all City departments. In
                                     FY09         FY10          FY10           FY11          particular, this cost center provides professional and quality support for the City’s
                                                                                             financial, accounts payable, purchasing, inventory, human resources, payroll,
 Transition the number of                                                                    applicant tracking, time and attendance, position control, budget, pension and
 Citywide manual processes                                                                   reporting writing systems.
                                          4             5               6         5
 to automated process by at
 least 5 per year                                                                            Major projects the Systems Support and Control cost center will manage in FY11
                                                                                             and in future years include:
 Provide City employees with
                                                                                                       Cash Receipting System
 training in human resources,
 financial, time management             36            50            50            50                   Performance Budget System Implementation
 and reporting applications by    sessions      sessions      sessions      sessions                   Employee Self Service and Benefits System Implementation
 offering 50 training sessions                                                                         Kronos System Upgrade
 annually




                                                                                       9-9
                                               Department of Finance
                                                            Division: Revenue

Division: Revenue

                           Actual    Adopted    Est. Act.    Adopted                                       Actual    Adopted    Est. Act.    Adopted
                            FY09        FY10       FY10         FY11                                        FY09        FY10       FY10         FY11
Division Expenditures                                                           Source of
by Cost Center                                                                  Division Funds
Revenue                  764,551     858,100    866,909      869,910            Departmental Revenue          0           0           0           0
Division Total          $764,551    $858,100   $866,909     $869,910              Subtotal                   $0          $0          $0          $0
                                                                                Fund Contribution
                           Actual    Adopted    Est. Act.    Adopted            General Fund (110)        31,072      32,800     44,417       33,840
                            FY09        FY10       FY10         FY11            Water Fund (210)         733,479     825,300    822,492      836,070
Division Expenditures                                                             Subtotal              $764,551    $858,100   $866,909     $869,910
by Type                                                                         Division Total          $764,551    $858,100   $866,909     $869,910
Salary and Wages         468,141     494,100    494,100      502,350
Benefits                 129,703     130,400    131,209      160,930
Overtime                   3,761       5,000     14,000        5,000                                       Actual    Adopted    Est. Act.    Adopted
  Personnel Subtotal    $601,605    $629,500   $639,309     $668,280                                        FY09        FY10       FY10         FY11
Contractual Services      80,085      73,500    123,500      129,530            Staffing Summary
Commodities                                                                     by Cost Center (FTEs)
                           4,818       5,100      8,100        5,100
Capital Outlays                                                                 Regular
                          78,043     150,000     96,000       67,000
Other                          0           0          0            0            Revenue                       9.0        9.0         9.0         9.0
  Operating Subtotal    $162,946    $228,600   $227,600     $201,630              Regular Subtotal            9.0        9.0         9.0         9.0
Division Total          $764,551    $858,100   $866,909     $869,910            Temporary
                                                                                  Temporary Subtotal          0.0        0.0         0.0         0.0
                                                                                Division Total                9.0        9.0         9.0         9.0




                                                                       9 - 10
                                                              Department of Finance
                                                                          Division: Revenue

                                                                                                  Objectives:
Division: Revenue
Division Purpose:                                                                                         Perform periodic audits of the cashier and address any overage or
                                                                                                          shortage issues to ensure fund collection accuracy
In a timely, accurate and equitable fashion, collect and record revenues for all                          Prepare and analyze monthly reports in order to ensure utility bills are
City departments through the Finance cashier; manage the billing and collection                           sent out on-time, and to ensure 100% of revenues are properly
of City water, sewer and refuse fees; and manage the billing and collection of                            collected and reported
special assessment charges.
                                                                                                          Perform periodic audits using CPDS information, GIS maps, Refuse
                                                                                                          Operations information, and the Maryland Department of Assessments
Significant Changes:
                                                                                                          and Taxation records in order to ensure that all utility properties are
Adopted FY10 to Estimated Actual FY10                                                                     billed accurately and registered with the City
Personnel expenditures increased by $9,800 due to overtime. Contractual                                   Perform quarterly comparisons between single family permits and actual
services expenditures are estimated to increase by $50,000 due to a transfer                              onsite inspections in order to ensure that all accounts are billed
from capital outlay to fund the utility billing online payment service. Capital outlay                    accurately in the utility billing system
expenditures are estimated to decrease by $54,000 due to a reduction in water                             Update the Water, Sewer, Refuse, and Stormwater Management fund
meter purchases.                                                                                          cash flows on an annual basis in order to ensure rates are equitable and
                                                                                                          cover all operating and capital expenses
Estimated Actual FY10 to Adopted FY11
Personnel expenditures increased by $29,000 due to increased benefit costs.                       Performance Measures:
Contractual services expenditures increased by $6,000 due to additional funding
for the utility billing online payment service. Capital outlay expenditures
                                                                                                                                      Actual       Target    Est. Act.      Target
decreased by $29,000 due to a reduction in water meter purchases.
                                                                                                                                       FY09         FY10        FY10         FY11
                                                                                                   Limit amount of cashier
                                                                                                   variance to no more than $25      $100.00       $25.00      $51.97      $25.00
                         Cost Center: Revenue                                                      for an entire year
                                                                                                   Maintain the number and
Cost Center Summary:                                                                               percent of monthly cashier         12 / 12     12 / 12      12 / 12     12 / 12
                                                                                                   spot audits that balance at 12    or 100%     or 100%      or 100%     or 100%
                                  Actual      Adopted        Est. Act.      Adopted                or 100%
                                   FY09          FY10           FY10           FY11
                                                                                                   Maintain the number and
Total Expenditures              764,551        858,100        866,909        869,910               percent of bills sent out on       12 / 12     12 / 12      11 / 12     12 / 12
Total Revenues                       N/A            N/A            N/A            N/A              time (by the 15th of the month)   or 100%     or 100%       or 92%     or 100%
                                                                                                   at 12 or 100%
                                                                                                   Achieve 12 / 12 or 100% of
                                                                                                   monthly revenue that is                        12 / 12      12 / 12     12 / 12
                                                                                                                                         N/A
                                                                                                   properly collected and                        or 100%      or 100%     or 100%
                                                                                                   reported *




                                                                                         9 - 11
                                                                    Department of Finance
                                                                                   Division: Revenue

                                          Actual        Target      Est. Act.         Target             Supplemental Information:
                                           FY09          FY10          FY10            FY11
    Maintain 100% reconciliation                                                                                                             Number of Bills Issued
    between the Revenue                      4/4           4/4           4/4            4/4
                                                                                                                      82,000                                                                                120
    Division’s refuse bill list to the   or 100%       or 100%       or 100%        or 100%
    Public Works’ refuse route list
                                                                                                                      80,000                                                                                100




                                                                                                                                                                                                                  Special Assessments
    Ensure 100% of comparisons                                                                                        78,000
                                                           4/4         25 / 25        25 / 25
    between single family permits                                                                                                                                                                           80
                                              N/A      or 100%        or 100%        or 100%
    and actual onsite inspections                                                                                     76,000
                                                      (quarters)     (permits)      (permits)




                                                                                                            Utility
    are accurate *                                                                                                                                                                                          60
                                                                                                                      74,000
*      This was a new Performance Measure in FY10.
                                                                                                                                                                                                            40
                                                                                                                      72,000
Workload Measures:
                                                                                                                      70,000                                                                                20
                                           Actual     Estimate       Est. Act.      Estimate
                                            FY09          FY10          FY10            FY11                          68,000                                                                                0




                                                                                                                               Actual


                                                                                                                                         Actual


                                                                                                                                                  Actual


                                                                                                                                                           Actual


                                                                                                                                                                    Actual


                                                                                                                                                                             Actual
                                                                                                                                         FY05




                                                                                                                                                                                      Estimate


                                                                                                                                                                                                 Estimate
    Number of utility audits / year              4              4              4            4




                                                                                                                               FY04




                                                                                                                                                  FY06


                                                                                                                                                           FY07


                                                                                                                                                                    FY08


                                                                                                                                                                             FY09




                                                                                                                                                                                                  FY11
                                                                                                                                                                                       FY10
    Number of water meters read              595 /         595 /         642 /          642 /
    monthly / quarterly                    12,149        12,159        12,215         12,220
    Number of bills issued:                                                                                                    Utility                                  Special Assessments
      Water/Sewer and Refuse               78,800        78,840        79,628         79,648
      Special Assessments                      24            13            64             64              Note: The special assessment bills steadily decreased until FY10 because the
                                                                                                          front foot benefit charge is now assessed at the time of the building of a home
                                                                                                          and thus no longer handled by the City of Rockville. While this particular factor
Regular Positions:                                                                                        no longer creates a special assessment bill for the City, there are other
                                                                                                          reasons for special assessments, such as driveway repairs, which have
                                                     Adopted        Adopted         Adopted               contributed to the increase in special assessments in FY10. At the same time,
    Position Title
                                                        FY09           FY10            FY11               the number of utility bills increased and then remained flat due to the rise in
    Revenue Supervisor                                    1.0            1.0             1.0              population within City limits and the building of new residences.
    Revenue Assistant I*                                  2.0            2.0             3.0
    Revenue Assistant II                                  1.0            1.0             1.0
    Meter Services Supervisor                             1.0            1.0             1.0
    Meter Services Technician                             3.0            3.0             3.0
    Cashier*                                              1.0            1.0             0.0
    Cost Center Total                                     9.0            9.0             9.0
* A 1.0 FTE Cashier position was reclassified as a Revenue Assistant I position for FY11.

                                                                                                9 - 12
                                          Department of Finance
                                                       Division: Revenue




One of the City’s Water Meter Readers, Larry McBride                       The City’s Online Utility Bill Payment System




                                                             9 - 13
                                                  Department of Finance
                                                 Division: Purchasing and Stockroom

Division: Purchasing and Stockroom
                             Actual    Adopted     Est. Act.    Adopted                                         Actual    Adopted    Est. Act.    Adopted
                              FY09        FY10        FY10         FY11                                          FY09        FY10       FY10         FY11
Division Expenditures                                                              Source of
by Cost Center                                                                     Division Funds
Purchasing and Contracts    366,697    386,800     395,536      403,720            Departmental Revenue             0          0           0           0
Stockroom                   158,393    176,600     170,454      176,080              Subtotal                      $0         $0          $0          $0
Division Total             $525,090   $563,400    $565,990     $579,800            Fund Contribution
                                                                                   General Fund (110)          525,090    563,400    565,990      579,800
                                                                                     Subtotal                 $525,090   $563,400   $565,990     $579,800
                             Actual    Adopted     Est. Act.    Adopted            Division Total             $525,090   $563,400   $565,990     $579,800
                              FY09        FY10        FY10         FY11
Division Expenditures
by Type                                                                                                         Actual    Adopted    Est. Act.    Adopted
Salary and Wages            412,660    436,900     442,900      445,800                                          FY09        FY10       FY10         FY11
Benefits                     94,845     96,400     103,210      120,520            Staffing Summary
Overtime                          0          0           0            0            by Cost Center (FTEs)
  Personnel Subtotal       $507,505   $533,300    $546,110     $566,320            Regular
Contractual Services         10,190     13,500      11,120        4,440            Purchasing and Contracts        4.0        4.0         4.0         4.0
Commodities                   7,395      1,600       1,140        1,140            Stockroom                       2.0        2.0         2.0         2.0
Capital Outlays                   0          0           0            0              Regular Subtotal              6.0        6.0         6.0         6.0
Other                             0     15,000       7,620        7,900            Temporary
  Operating Subtotal        $17,585    $30,100     $19,880      $13,480              Temporary Subtotal            0.0        0.0         0.0         0.0
Division Total             $525,090   $563,400    $565,990     $579,800            Division Total                  6.0        6.0         6.0         6.0




                                                                          9 - 14
                                                           Department of Finance
                                                        Division: Purchasing and Stockroom

                                                                                               Performance Measures:
Division: Purchasing and Stockroom
Division Purpose:                                                                                                                        Actual         Target     Est. Act.        Target
                                                                                                                                          FY09           FY10         FY10           FY11
To provide the City with the means to secure quality goods and services at the
                                                                                                   Maintain the percent of
best value and in a timely manner while maintaining the integrity of the bidding                                                         40 / 40       40 / 40       64 / 64       40 / 40
                                                                                                   formal solicitations awarded
process and conforming to City, State and Federal requirements.                The                                                      or 100%       or 100%       or 100%       or 100%
                                                                                                   without valid protest at 100%
Stockroom provides effective, efficient and accountable management of
materials for the City by taking time to understand and satisfy the requirements of                Maintain the percentage of               $2.7
customers to the extent allowed while maintaining the financial and production                     formal bid savings at or               million         12%            29%           29%
controls necessary to run a responsible and transparent governmental operation.                    above 10%*                            or 21%
Significant Changes:                                                                               Maintain or increase the
                                                                                                   number of procurement
                                                                                                                                              90             84            84            84
Adopted FY10 to Estimated Actual FY10                                                              cards issued in the City at or
Personnel expenditures increased by $12,800 due to a position upgrade and                          above 84 annually
increases in benefit costs. Other expenditures decreased by $7,400 to offset                       Maintain or increase the
decreased revenue projections during FY10.                                                         annual amount of rebates
                                                                                                                                        $25,907       $30,000            $0**      $30,000
                                                                                                   and incentives received at or
Estimated Actual FY10 to Adopted FY11                                                              above $30,000
Personnel expenditures increased by $20,200 due mainly to increased benefit                    *      Actual dollar amounts may vary greatly from year to year depending on the City’s
costs. Contractual services expenditures decreased by $6,700 due to a                                 needs. For this reason, only a target percentage of savings is given for all targets and
reduction in travel and training funding.                                                             estimates.
                                                                                               **     No annual rebate due to decreased expenditures under Cooperative Contract Group
                                                                                                      Spending. Staff have taken steps to replace this contract with a more favorable
              Cost Center: Purchasing and Contracts                                                   contract to be in place by July 2010.


Cost Center Summary:                                                                           Regular Positions:

                                 Actual      Adopted       Est. Act.     Adopted                                                                    Adopted       Adopted        Adopted
                                                                                                   Position Title
                                  FY09          FY10          FY10          FY11                                                                       FY09          FY10           FY11
Total Expenditures             366,697        386,800       395,536       403,720                  Purchasing Manager                                    1.0             1.0            1.0

Total Revenues                      N/A           N/A           N/A            N/A                 Contract Specialist                                   1.0             1.0            1.0
                                                                                                   Buyer II                                              1.0             1.0            1.5
Objectives:                                                                                        Buyer I                                               1.0             1.0            0.5
                                                                                                   Cost Center Total                                     4.0             4.0            4.0
         Ensure the integrity of the public bidding process in order to promote
         competition thereby reducing capital and operating costs
         Increase the use of procurement cards for purchases to obtain
         monetary rebates and reduce overall processing costs


                                                                                      9 - 15
                                                          Department of Finance
                                                       Division: Purchasing and Stockroom

                                                                                                                                   Actual         Target    Est. Act.     Target
                        Cost Center: Stockroom                                                                                      FY09           FY10        FY10        FY11
                                                                                                 Maintain the percent of
Cost Center Summary:                                                                             error between actual and
                                                                                                 system annual inventory
                                 Actual     Adopted       Est. Act.    Adopted                   counts at or below:
                                                                                                                                      99 /          250 /       121 /       250 /
                                  FY09         FY10          FY10         FY11
                                                                                                                                    1,249          1,249       1,250       1,250
Total Expenditures              158,393     176,600       170,454       176,080                       Stock number                or 7.9%         or 20%     or 9.7%      or 20%
Total Revenues                     N/A           N/A           N/A           N/A                                                      58 /        1,587 /        78 /     1,576 /
                                                                                                                                   31,740         31,740      31,523      31,523
                                                                                                      Number of items             or 0.2%          or 5%     or 0.2%       or 5%
Objectives:                                                                                                                        $730 /     $4,908 /       $2,300 /    $4,934 /
                                                                                                                                 $245,403    $245,403       $246,687    $246,687
         Maintain adequate levels of inventory in order to meet department                            Dollar amount               or 0.3%       or 2%        or 0.9%       or 2%
         demands while at the same time reducing the total dollar value of stock
         items                                                                                   Maintain the number of
         Monitor inventory usage levels with the goal of reducing the total value                items returned to use at              46             20          21          20
         of inventory that is written off as obsolete at year end                                20 per year *
         Decrease the percentage of error between actual and system inventory
                                                                                             *      This was a new Performance Measure in FY10.
         counts by performing spot audits
         Increase the number of items returned to use by refining procedures in              Regular Positions:
         order to reduce overall costs to the City
                                                                                                                                             Adopted        Adopted     Adopted
                                                                                                 Position Title
Performance Measures:                                                                                                                           FY09           FY10        FY11
                                                                                                 Inventory Services Supervisor                      1.0          1.0         1.0
                                   Actual       Target     Est. Act.       Target                Inventory Services Clerk                           1.0          1.0         1.0
                                    FY09         FY10         FY10          FY11
                                                                                                 Cost Center Total                                  2.0          2.0         2.0
 Maintain at least a 99%
                                               1,236 /       1,236 /      1,236 /
 average availability rate of
                                     N/A        1,248         1,248        1,248
 stock items requested by
                                               or 99%        or 99%       or 99%
 City departments *
 Reduce the total dollar
 value of stock items to        $245,403     $269,800      $244,387     $248,216
 $248,216 or less
 Maintain value of
 inventory written off as
                                 $17,619      $15,800            $0        $7,900
 obsolete at year-end by at
 or below $7,900.


                                                                                    9 - 16
                              Department of Finance
                          Division: Purchasing and Stockroom




City of Rockville Stockroom                          eMaryland Marketplace: the City’s Bid Postings




                                         9 - 17
                                               Department of Finance
                                                            Division: Budget

Division: Budget
                           Actual    Adopted    Est. Act.    Adopted                                       Actual    Adopted    Est. Act.    Adopted
                            FY09        FY10       FY10         FY11                                        FY09        FY10       FY10         FY11
Division Expenditures                                                           Source of
by Cost Center                                                                  Division Funds
Budget                   291,248     310,100    305,337      323,520            Departmental Revenue          0           0           0           0
Division Total          $291,248    $310,100   $305,337     $323,520              Subtotal                   $0          $0          $0          $0
                                                                                Fund Contribution
                                                                                General Fund (110)       291,248     310,100    305,337      323,520
                           Actual    Adopted    Est. Act.    Adopted              Subtotal              $291,248    $310,100   $305,337     $323,520
                            FY09        FY10       FY10         FY11            Division Total          $291,248    $310,100   $305,337     $323,520
Division Expenditures
by Type
Salary and Wages         231,221     246,900    244,900      246,400                                       Actual    Adopted    Est. Act.    Adopted
Benefits                  54,946      55,100     58,577       71,230                                        FY09        FY10       FY10         FY11
Overtime                       0           0          0            0            Staffing Summary
  Personnel Subtotal    $286,167    $302,000   $303,477     $317,630            by Cost Center (FTEs)
Contractual Services                                                            Regular
                           3,597       7,800      1,527        5,650
Commodities                                                                     Budget                        3.0        3.0         3.0         3.0
                           1,484         300        333          240
Capital Outlays                                                                   Regular Subtotal            3.0        3.0         3.0         3.0
                               0           0          0            0
Other                                                                           Temporary
                               0           0          0            0
  Operating Subtotal      $5,081      $8,100     $1,860       $5,890              Temporary Subtotal          0.0        0.0         0.0         0.0
Division Total          $291,248    $310,100   $305,337     $323,520            Division Total                3.0        3.0         3.0         3.0




                                                                       9 - 18
                                                        Department of Finance
                                                                     Division: Budget

Division: Budget