Annual Revenues

Each budget projects revenues from various sources that are divided into the following accounts:

1000 – TAXES & FEES

1100 – Local Property Taxes

This comprises all taxes on property, real and personal, plus any penalties or interest received as a result of late payments. The rates are explained above. Due to the increase in the Town’s tax base through the rise in value of property in Garrett Park, this amount increases from 7-11% each year without any change to the tax rate.

1200 – Local Income Taxes

This is the Town’s share of taxes paid to the state by Town residents and businesses located in Town. Because this includes capital gains as well as income tax, the amount can vary substantially year-to-year. This amount moves up or down in response to changes in the economy, usually delayed by a year or two.

1400 – Licenses & Permits

This comprises building, variance, and driveway permit fees, as well as liquor license fees.

2000 – INTERGOVERNMENTAL REVENUES

2200 – From State of Maryland

This reflects Highway User payments from gasoline taxes the state receives. Depending on the state’s budgetary situation, this amount fluctuates, but trends upward as gas tax receipts increase. These funds are to be spent on the maintenance and repair of our streets and the Town is required to report annually on street work done.

2300 – From Montgomery County

Each year the county calculates the value of county services that the Town provides directly to its residents and reimburses the Town. This is somewhat dependant on the county’s budgetary situation and has been level funded in FY 2008 after annual increases in past years.

3000 – SERVICE CHARGES

3100- General Government Charges

Photocopying charges are the primary source with a few minor receipts for other services provided. Budgeted at $400 for FY 2008.

3200 – Municipal Refuse Collection Fees

See above for the explanation of these fees.

4000 – FINES & FORFIETURES

Any fines the Town collects go to this account. Typically, there is no amount budgeted as the Town rarely levies fines.

5000 – MISCELLANEOUS REVENUES

5100 – Investment Earnings

The Town places its funds into two accounts: an interest-bearing checking account at Wachovia Bank; and the Montgomery County Pooled Investment Fund. Typically, the Town keeps $25,000 to $50,000 in the checking account, depending on anticipated payments at any given moment, and maintains all other cash in the county account, which earns interest at approximately 25 basis points (.0025%) below the Federal Funds rate, similar to rates offered by ING Bank and others on their savings accounts. Funds are transferred between these accounts as needed. Current balances can be found in the most recent monthly financial report [LINK]. Obviously, amounts invested and interest rates affect this source of revenue and it is estimated very conservatively.

5200 – Rents & Concessions

Penn Place & Town Hall rents, as well as cable TV franchise fees are placed here.

5300 – Contributions & Donations

The Town currently receives funds to support the preservation, management, and accessibility of its extensive archival collection. [LINK TO ARCHIVES] Any other contributions or grants would go here.

5500 – Sale of Property

At the moment, the Town sells very little – mostly publications and posters.

[LINK TO ITEMS AVAILABLE FOR PURCHASE]

9000 – CARRYOVER FROM PRIOR YEAR

This is an amount estimated to be a surplus, if any, from the prior year. As this estimate is made 4 – 5 months before the prior year closes on June 30^th, it is difficult to predict.

Annual Expenditures

Each budget projects expenditures that are divided into the following accounts:

10000 – PERSONNEL

10100 – Salaries

Salaries paid, including casual labor and reimbursement for compensatory time not taken as leave.

10200 – Overtime

Generally, hourly workers called back to work outside of normal hours, or who work more than 40 hours per week, are given time and one-half for the extra hours worked.

10300 – Benefits

For an explanation of the benefits offered to Town employees go to [LINK]. The cost of these benefits is budgeted in this account.

10400 – Payroll Taxes

11000 – TOWN ADMINISTRATION

11100 – Elected & Appointed Officials

This account covers any Council or committee meeting costs and any expenses incurred by elected and appointed officials while on Town business.

11200 – Elections

This comprises the election judges’ salaries ($100 each per election) and expenses, as well as postage for mailings and other expenses related to Town elections.

11300 – Archives & Public Records

This account includes all expenses related to the management, storage, and preservation of the Town’s collection of historic documents, as well as vital public records. The salary for the Town Archivist is included.

11400 – General Administrative Expenses

This account comprises all expenses related to the day-to-day administration of the Town. Office supplies, office equipment expenses, computer expenses, postage, telephone, cleaning, furniture, and similar expenses are included here.  

11700 – Professional Services

Audit, legal, and accounting fees.

11800 – Insurance

The Town uses the Local Government Insurance Trust (LGIT) as the carrier for all its property and liability insurance. The Clerk-Treasurer’s Bond is also included in this account.

11900 – Town Administration, Other

From time to time there are expenses that do not fall readily into other administrative accounts.

12000 – SPONSORSHIPS, SUBSCRIPTIONS & DUES

12100 – Membership dues

This account covers the Town’s membership in the Maryland Municipal League (MML) and the MML’s Montgomery County chapter.  

12200 – Sponsorships

The Town supports the Garrett Park Citizens Association and the Montgomery County Martin Luther King Day Committee.

12300 – Subscriptions

The Town pays for Bugle subscriptions for its public records, as well as for its Annapolis Delegation, Congressman, and U. S. Senators. The Town also subscribes to the Montgomery County zoning ordinance update service provided by the county attorney’s office.

13000 – BUILDINGS & GROUNDS

13100 – Penn Place

13200 – Town Hall

13300 – Maintenance Department Building

The buildings & grounds accounts cover all the regular operating and maintenance costs for the Town’s three buildings. Substantial repairs or improvements are usually carried as capital expenses.

14000 – TOWN SERVICES

14100 – Roads & Sidewalks

This comprises minor repairs and improvements, leaf and snow removal, signage, painted markings, and street light operation and maintenance.

14200 – Stormwater Drainage Maintenance

This account includes the inspection, cleaning, and maintenance of the Town’s Stormwater drainage system.

14300 – Municipal Refuse Removal

This is the cost for the contract with Montgomery County Sanitation and Recycling, Inc., the Town’s trash and recycling collection contractor. It includes large item pickups and an estimated inflation and fuel adjustment charge.

14400 – Arboretum

The Arboretum Committee annually proposes to the Council a work program for maintaining and enhancing the arboretum – tree and shrub planting, care, and removal costs, as well as database development, planning and research, and committee expenses are included. Funding provided by the Council for this work is in this account.

14500 – Fees

The Town must pay tipping fees at the Montgomery County Transfer Station for trash, debris, and other materials that are collected by the Maintenance Department from time-to-time. Also, there are MVA fees for the Town’s vehicles, and WSSC hydrant water meter fees, among others.

14600 – Parks

This comprises the various expenses incurred in operating and maintaining the parks throughout Town. Also, the Town has agreed to maintain the landscaping in the County’s portion of Garrett-Waverly Park.

16000 – EQUIPMENT REPAIR & MAINTENANCE

This account includes all operating, maintenance, and repair of Town equipment, including vehicles, mobile equipment, fuel and oil, tools, etc.

17000 – PUBLICATION EXPENSE

This account has covered the cost of designing and printing a number of Town publications over the decades. Now, it will also include the Town’s website’s annual operating and maintenance expenses.

18000 – CONFERENCES CONVENTIONS MEETINGS

The largest part of this account is for MML Annual and Fall conference attendance by the Mayor and Councilmembers. From time-to-time there may be other events included.

19000 – CONTINGENCY

This is included to provide a source of funds within the budget should unanticipated expenses cause any given account to need increased funding. The Council must vote to transfer funds between accounts.

20000 – DEBT SERVICE

When the Town borrows money, all principal, fee, and interest payments are made from this account. The Town currently has one bond issue outstanding, issued in 2002 in order to pay for roadwork, the new Town street lights, and the Penn Place renovation project. [LINK TO BOND P&I].

21000 – TAXES & BAD DEBT

While the Town is a tax-exempt organization under both state and federal law, from time-to-time we get charged sales tax on out-of-state purchases and property taxes on leased equipment. These are small amounts, but need a dedicated account for audit purposes. We rarely have write-offs.

TOTAL OPERATING EXPENDITURES

The total of all the above accounts produces the annual operating budget. The spending authority granted by these appropriations expires at the end of each fiscal year, to be replaced by the next year’s budget.

23000 – TRANSFER TO CAPITAL

Each year the Council reviews the existing Capital Program [LINK] and makes changes and additions to it. The total of all new Capital Program appropriations provided for in an annual budget is transferred out as an operating expense at the beginning of the fiscal year for accounting purposes. Unexpended capital appropriations survive the end of a fiscal year and spending authority remains until all the appropriation is expended or the Council makes changes to it. Actual expenditures throughout the year are charged to the appropriate account in the Capital Program. It is not necessary to hold funds in a capital reserve unless specifically required by an act of the Council, so from time-to-time the Town will not have all the funds on hand needed to fund all capital appropriations in their entirety. This usually occurs in the beginning of a fiscal year as the Town receives revenue throughout the year that can be used for capital appropriations made at the year’s beginning.  

25000 – TRANSFER TO OPERATING RESERVE

With the FY 2008 appropriation of $63,796, the Town’s operating reserve has risen to $125,000. The total amount of cash that the Town has at any time may fall below the level of the appropriated reserve. However, this reserve must be available, in cash, at the beginning of any fiscal year, so expenditures throughout the year must be managed to preserve this reserve. Transfers from the reserve can only be made by ordinance. Reserve funds are kept in the Town’s account.

TOTAL EXPENDITURES

This is the total amount of expenditures and transfers appropriated for the fiscal year and must be in balance with the Total Revenues appropriated to create a balanced budget.