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Rockville council adopts FY2025 budget amendment to record leases, fund REAP, add two police overfills and cover IRS arbitrage payments
Summary
On June 2 the Rockville Mayor and Council introduced, waived layover, and adopted Budget Amendment No. 4 for FY2025 to record administrative year‑end adjustments, transfer $80,000 to REAP, authorize two police officer overfills and cover bond arbitrage liabilities and project reconciliations.
The Rockville Mayor and Council on June 2 introduced and adopted Ordinance No. 4‑25 amending the FY2025 budget to record several year‑end administrative adjustments and program changes, including an $80,000 general fund transfer to the Rockville Emergency Assistance Program (REAP), authorization to overfill two police officer positions, and payment of arbitrage liabilities tied to prior bond proceeds.
Mary Sue Martin, a city finance official, told the council the amendment primarily covers ‘‘administrative adjustments needed to accommodate the fiscal year end recording of long term leases, subscription based IT arrangements and depreciation.” She also listed program‑level items: increased swim and fitness center revenue and temporary staffing, an $80,000 transfer to REAP to support senior affordable housing tenants, overfill authorization for two police officer positions, arbitrage liability payments in the water, sewer and stormwater funds, an adjustment for the city’s share of operating costs at the Blue Plains Wastewater Treatment Plant, and additional construction contingency and support for the water treatment plant safety improvement CIP project.
City staff explained the arbitrage payments are returns of excess investment proceeds to the IRS, not a general fund shortfall. "We are not out of pocket on this. This isn't money we're taking away from the general fund or any other program," a city official said, adding the city expects to use staffing, procurement and private resources to accelerate project delivery and avoid future arbitrage liabilities.
Councilman Van Grama introduced the ordinance. Councilmember Jackson moved to waive the statutory layover; the council voted by voice to waive the layover and then voted to adopt the ordinance. Councilmembers who made motions and seconds were named on the record; the adoption passed on a voice vote with all members saying "aye." Staff recommended and the council approved waiving the layover and adopting the ordinance the same evening.
The finance staff committed to report back to the council with updates on project staffing, procurement and any follow‑up budget amendments, including a potential salary survey and adjustments for police compensation after July 1 when neighboring jurisdictions post budgets.
