Gaithersburg adopts FY27 budget, keeps property tax rate steady

The Gaithersburg Mayor and Council adopted the city’s fiscal year 2027 budget Monday night, keeping the ad valorem tax rate unchanged at 26.2 cents per $100 of assessed value for real property and 53 cents per $100 for personal property.

Director of Finance Janice Hartman said the adopted ordinance incorporates recent updates: an anticipated $500,000 increase in building permit revenue tied to local development projects, a $25,000 grant for a Maryland Historic Trust re‑survey, and personnel cost adjustments reflecting hires and pay‑equity updates. The council also shifted certain capital and stormwater expenditures between fiscal years to better align project timing, producing a net $3.4 million decrease to the FY27 CIP compared with the original proposal.

Hartman told the council staff had refined costs for an ADA compliance effort, the municipal court study for uses of 31 South Summit and 14 Fox Corner, and adjustments to animal services and software contracts. She said net general fund expenditures and revenues each rose by $65,280 after the changes.

Mayor Jud Ashman and council members thanked staff for the work on a balanced, value‑driven budget. The ordinance passed by voice vote, recorded as 5-0.

What the budget does: it maintains the current tax rate, continues funding for parks and public safety, and retains flexibility for major capital projects tied to downtown and municipal complex work. Hartman highlighted the city’s three large development projects anticipated to produce the increased permit revenue: Stevenson Metro, One Central, and Casey Rosedale.

Next steps: the council adopted a separate resolution to codify the FY27 fee schedule during the same meeting; that resolution included small changes such as aligning the solar permit fee with Montgomery County and updating photo‑radar penalty tiers to match state law.