On June 1, 2009, the Gaithersburg Mayor and City Council adopted the FY 2010 budget. The total budget of $48,013,042 represents an 8% decrease when compared to FY 2009. The operating budget of $41,972,403 is 0.2% less than FY 2009. The contribution to the Other Post-Employment Benefits Trust (OPEB) calculated by our actuaries is $910,000, which is the same budgeted amount as last year. The adopted Capital Improvements Plan of $5,130,639 represents a 45% decrease over the amount funded in FY 2009.
As adopted, the Mayor and Council have maintained the real property tax rate at $0.212 per $100 of assessed value. The ad valorem tax on tangible personal property remains at the rate of $0.53 per $100 of assessed value.
In order to balance the budget the Mayor and Council authorized the use of reserve funds in the amount of $3,493,485, which, while consistent with budgeted use of reserve funds in previous years, does exceed the approved undesignated fund balance policy. The current economic conditions represent the type of situation the reserves were designed to accommodate.
A summary of FY 2010 budget highlights can be found in the City Manager's budget letter, which is part of the complete budget packet.