Gaithersburg staff present $156 million FY26 proposal; no tax increase proposed

City Manager Tanisha Bryley and Finance Director Janice Hartman presented the Gaithersburg proposed fiscal year 2026 budget at a public hearing on April 7, 2025, telling the mayor and council the all‑funds plan totals $156 million and includes no proposed property tax increase.

The proposal would increase all‑funds spending 16% from the current year, a rise officials attributed largely to planned capital investments. The general fund, the city’s primary operating account, is shown at roughly $99.6 million, which includes about $27.5 million in transfers to other funds. Excluding transfers, the general fund operating budget would be about $72 million — a roughly 6% increase driven primarily by wages, benefits and personnel additions, staff said.

“We are eager to hear your feedback and address your questions,” City Manager Tanisha Bryley said during the presentation, adding that the proposal was intended to preserve core services while funding capital needs over the next several years.

Why it matters: The budget funds police, public works, parks and other city operations and sets the city’s near‑term capital program. Staff emphasized the city remains debt‑free and plans to fund large projects by reappropriating reserves rather than issuing debt, a practice they said preserves financial flexibility.

Key figures and priorities: Finance Director Janice Hartman walked the council through the online budget book and described revenue and expense drivers. Staff project roughly 8% revenue growth next year with real property and shared taxes making up the largest revenue slices. Reappropriation — proposed at about $12.3 million — and transfers to the capital improvements fund account for much of the year‑over‑year increase. Personnel costs make up about 52% of proposed general fund expenditures; the budget includes modest across‑the‑board adjustments and specific increases to police and public works pay scales and two additional police officer positions.

Council members asked for clarification on fund accounting and revenue timing. “If you’ve got $99 million in the general fund, where’s the $156 million come from?” a council member asked, prompting a staff explanation that the all‑funds figure includes the capital improvement fund, enterprise and special funds in addition to the general fund.

Public comment and timeline: The city held the public hearing and invited oral comments; staff said the public record for the budget will remain open through 5 p.m. on April 23, 2025. A detailed budget workshop is scheduled for April 14; if adopted as planned, the fiscal year would begin July 1 and final adoption is anticipated May 5.

What’s next: Council will review budget detail at the April 14 work session and can propose changes before final adoption in May. Staff said they will continue to monitor external fiscal pressures — including changes in income tax receipts and office vacancy trends — and will not use reserves for ongoing operating costs.

Ending: The council kept the public record open for the FY26 budget through April 23 to gather more community input before the scheduled May adoption.