Gaithersburg officials present $202 million FY27 proposal with no proposed tax increase

Gaithersburg City Manager Tanisha Briley presented the FY27 proposed budget on April 13, saying the all‑funds plan totals $202 million and is driven largely by capital investment. She told the mayor and council the proposal “continues to deliver current service levels” while advancing strategic priorities and includes a planned use of roughly $15 million in reappropriations to support capital projects.

Briley and Finance Director Janice Hartman described the general fund revenue picture as cautious but improving: recurring general fund revenue (the solid‑blue portion of staff charts) is projected at about $95 million for FY27, while the administration expects one‑time swings from permits and investment earnings to continue. Briley noted that revenue growth since FY21 has been about 34%, driven in part by pandemic‑era federal support including ARPA and CARES Act funds.

Staff said major revenue categories remain local/ shared taxes — principally real estate and income tax — which together account for the largest share of general fund receipts. Briley said real estate tax revenue is forecast at about $40 million for FY27 and income tax at roughly $19 million; she emphasized that the city’s tax rate will remain unchanged.

On the spending side, the FY27 proposal funds core services and workforce costs. The personnel services budget was reported at roughly $54–55 million, and the package includes a general wage increase of 4% and a minimum wage adjustment to $18 an hour. Janice Hartman said health insurance costs are budgeted at 9.2% for FY27. The proposed budget also adds several positions across departments — including a new police officer, a police systems support technician, part‑time interns in the City Attorney’s Office, and expanded part‑time hours in Parks and Recreation — many of which officials said are offset by additional program revenue where applicable.

Briley explained the city’s pay‑as‑you‑go capital approach: the general fund will transfer approximately $37 million to other funds, with the largest share going to the capital improvement program (CIP). Janice’s five‑year projections show the citywide ending fund balance rising from $153 million in FY21 to $210 million in FY25, peaking around $213 million in FY26, then drawing down to about $159.6 million in FY27 as planned CIP work executes.

Officials repeatedly framed the FY27 budget as “no‑frills” and designed to preserve service levels without raising the property tax rate. Staff will accept public input through April 22 before the mayor and council are scheduled to consider adoption at their May 4 meeting.