Gaithersburg council adopts FY2026 budget, holds tax rates steady

The Gaithersburg Mayor and Council adopted the city's fiscal year 2026 budget on May 5 and set the ad valorem tax rates at 26.2 cents per $100 of assessed value for real property and 53 cents per $100 for personal property, unchanged from the prior year. The ordinance passed on a 5-0 vote.

Janice (Director of Finance Administration) told the council the ordinance "establishes the City budget which provides a complete financial plan including anticipated revenues and proposed expenditures and transfers for the fiscal year 07/01/2025 to 06/30/2026." She said a public hearing was advertised in the Washington Post on March 20, 2025 and the record was closed April 23, 2025.

The budget package incorporated several subsequent adjustments since the proposed version discussed in the council's April work session. Janice said general fund revenue decreased by $307,362 overall; among the changes she cited a $100,000 reduction in police fine revenue and a $23,000 reduction in the transfer from the stormwater fund to cover administrative costs. Expenditure changes reflected updated personnel costs and an updated health insurance rate. Capital improvements program adjustments included $500,000 of additional state revenue for the 8 and 12 South Summit Avenue project and timing shifts of expenses across fiscal years. Janice also noted a $100,000 add for a potential joint state-county economic development project and $20,000 for increased leasing costs on undercover police vehicles.

Mayor Judd Ashman thanked staff for the budget book and presentation and the council voted to adopt the ordinance. The council did not record individual roll-call votes in the meeting transcript; minutes show the tally as 5 yes, 0 no, 0 abstentions.

The ordinance sets the legal levy and the city will proceed into FY2026 under the adopted revenue and spending plan. The council applauded city staff for their work on the budget before moving on to other agenda items.