Village manager lays out conservative FY27 draft budget; council discusses stormwater rebate, cable-fee request and waste-contract RFP

Village Manager Michael opened a public FY27 budget working session saying the draft budget and tax-rate resolution will be formally introduced at the March 19 council meeting and that the annual adoption meeting is scheduled for May 14. He explained the spreadsheet columns (FY26 year-to-date, FY26 budget, draft FY27) and said the FY27 draft holds revenues flat at $1,100,000 while noting income tax comprises about 65% of that total.

Michael said the revenue assumption is intentionally conservative: "So we're underestimating revenue and overestimating expenses," he said, adding the village typically outperforms those conservative estimates. Resident Marty pressed for a clearer public summary of the village’s overall financial picture, noting "many people have been surprised to learn that we have 7 and a half million dollars in total resources," and recommended a one-page flyer to explain reserves and big-picture balances.

Council members focused on several budgetary priorities. Michael said he has set aside $1.5 million for capital projects and expects to spend roughly $500,000 on an imminent sidewalk project; he proposed keeping the capital reserve funded so the council can reallocate it if a large stormwater or infrastructure need arises. On program proposals, Michael said he included a $55,000 line for stormwater education and incentives — a rebate program for rain barrels and rain gardens that he said was modeled on a nearby jurisdiction: "I took that dollar amount from Yasmina's research related to Chevy Chase View," Michael said.

Yasmina, a member of the stormwater task force, described the task force recommendations and said consultants will present their findings to the community; she told the council the greenscaping and incentive ideas are intended to augment county programs to reduce runoff.

The council also discussed a request from Montgomery Municipal Cable to reallocate franchise-fee revenue back to the nonprofit that produces local video and event coverage; Michael said the cable group "is having a hard time with their funding sources" and that the council will receive a formal letter to consider reallocating that funding. No decision was made during the working session.

Operations lines that drew attention included street cleaning (Michael proposed a $6,000 increase to cover additional labor due to a county requirement to use electric blowers) and an aggregated snow-removal line ($50,000) because unusually heavy snow this winter pushed expenditures above the combined prior budget line items. On trees, council members suggested an arborist RFP that includes a twice-yearly village-wide assessment to consolidate work and possibly reduce per-job costs; Michael said he will include appropriate RFP language and noted potential savings from direct nursery purchases for new plantings.

The village’s waste-management contract, currently extended through June 30, 2026, will be the subject of an April RFP that Michael said must be posted for at least 30 days by state law; the council discussed how the village’s side-yard pickup requirement limits the pool of willing bidders and stressed the need for a clear scope in the RFP.

Jean and others pressed for better monthly reporting and audit practices. Michael and staff confirmed the village uses an outside accountant (Nicole at WCS) and an auditor (Eva Webb). Michael described a shared QuickBooks system and said the manager retains hands-on responsibility for audit preparation to catch transactional details that external reviewers might miss.

Treasurer comments framed the village’s fiscal position as strong but noted the importance of modeling risks such as interest-rate changes and potential economic downturns. Council members asked that staff provide sensitivity analyses for income-tax and interest-income assumptions ahead of the formal March presentation.

Next steps: the manager will draft a transmittal letter and a public flyer summarizing the budget, the stormwater task-force findings will be presented at an upcoming meeting, the waste-management RFP will be posted in April, and the council will consider the Montgomery Municipal Cable request and other program additions at future meetings. The working session closed with no formal votes taken.