The Montgomery County Council will meet Wednesday, May 6 to continue reviewing the Fiscal Year 2027 operating budget, focusing on housing, transportation, and environmental services, including proposed decreases for housing programs and increases in transportation funding such as expanded bus service and Vision Zero safety efforts.
The Council will also consider new transportation fees and fines, updated parking rates, and budget proposals for departments including General Services, Environmental Protection, and Community Engagement, along with potential increases in solid waste service charges and investments in electric vehicle infrastructure, as several items move forward for further review in the budget reconciliation process. Full agenda below courtesy Montgomery County:
“The Montgomery County Council will meet on Wednesday, May 6 at 9:30 a.m. to review the Fiscal Year (FY) 2027 Operating Budget. Each Council staff report contains additional budget information including items identified for the Council’s budget reconciliation process.
Budget Consent Calendar
Each item on the Council’s Budget Consent Calendar can be found on the Council agenda for Wednesday, May 6, which is available on the Council website.
Fiscal Year 2027 Operating Budget
Department of Housing and Community Affairs
Review: The Council will review the more than $77.7 million FY27 Operating Budget for the Department of Housing and Community Affairs (DHCA), which represents a 7.1 percent decrease from the approved FY26 Operating Budget. Personnel costs comprise approximately 26 percent of the budget and operating expenses and debt service account for the remaining 74 percent of the FY27 budget.
The Planning, Housing and Parks (PHP) Committee recommends approval of the DHCA operating budget with four items on the reconciliation list. Additional committee recommendations can be found in the Council staff report.
Review: The Council will review the more than $52.3 million FY27 Operating Budget for the Housing Initiative Fund, which represents a 12.6 percent decrease from the approved FY26 Operating Budget. There are no programmatic or staffing enhancements for FY27. The decrease is primarily due to an increase in projected debt service transfers for FY27, which result in less available resources for the Housing Initiative Fund operating budget.
Department of Transportation – General Fund
Review: The Council will review the $70 million FY27 Operating Budget for MCDOT, which represents a 4.1 percent increase from the approved FY26 Operating Budget. The increase includes $596,166 programmatic and staffing additions and a $2.7 million increase for compensation adjustments and other cost increases. The Transportation General Fund provides services within four divisions of MCDOT, including Traffic Engineering and Operations, Highway Services, and portions of Transportation Engineering and the Director’s Office.
The Transportation and Environment (TE) Committee recommends placing four items totaling more than $596,000 on the reconciliation list and recommends changes to four Capital Improvements Program (CIP) projects.
Department of Transportation – Mass Transit
Review: The Council will review the $217.8 million recommended FY27 Operating Budget for the MCDOT Mass Transit Fund, which represents an increase of $7 million, or three percent, compared to the approved FY26 Operating Budget. The recommendation includes more than $1.1 million in enhancements, including the expansion of Flex bus service to Poolesville and Damascus and all-day Burtonsville Flash bus service by 2027. The recommendation includes a more than $6.8 million increase for compensation adjustments and other cost increases. The Mass Transit Fund provides for the activities of MCDOT’s Division of Transit Service, of which the primary focus is operating Ride On bus services and the Community Mobility Services program.
The TE Committee recommends placing two items totaling more than $1.1 million on the reconciliation list and recommends changes to five CIP projects pending review.
Department of Transportation – Parking Lot Districts
Review: The Council will review the County Executive’s recommended $31 million FY27 Operating Budget for Parking Lot Districts, which represents an increase of $937,530, or 3.1 percent, compared to the approved FY26 Operating Budget. The recommendation includes an increase in programmatic and staffing additions, enhancements and compensation adjustments.
The TE Committee recommends placing two items totaling more than $191,000 on the reconciliation list and recommends changes to four CIP projects.
Vision Zero Non-Departmental Account
Review: The Council will review the more than $497,000 FY27 Operating Budget for the Vision Zero Non-Departmental Account (NDA), which represents a 119 percent increase from the approved FY26 Operating Budget. The increase is comprised of programmatic and staffing additions. This NDA funds the County Executive’s oversight and coordination of the Vision Zero Initiative to end traffic related serious injuries and fatalities through a full-time Vision Zero Coordinator and supporting operational funds. The operational funds assist the Vision Zero Coordinator in implementing and updating the Vision Zero Action Plan.
The TE Committee recommends placing one item on the reconciliation list. The $30,000 added to the reconciliation list is to match the $240,000 federal grant award under the Safe Streets for All program received by the County. This grant funding, combined with an additional match and $30,000 from the Vision Zero NDA base budget, will utilize $300,000 to update the Vision Zero Action Plan, including robust community engagement to improve the Action Plan findings and recommendations. The TE Committee expressed its strong support for the federal grant-funded work matched with the $30,000 increase.
FY27 Transportation Fees, Charges and Fares
Review: The Council will review the County Executive’s recommended resolution on FY27 Transportation Fees, Charges and Fares. The County Executive’s recommended resolution includes changes to the adopted FY26 resolution. These changes include the creation of a new $75 fine for driving, standing or parking in a bus lane, a new Controlled Zone (CZ) Permit for employers in each Parking Lot District and a new per kilowatt-hour (kWh) charge for electric vehicle charging in all Parking Lot Districts. The resolution also includes changes to end the collection of parking fees at 6 p.m. rather than 10 p.m. on weekdays, a stop to collecting parking fees on Saturday and increases to hourly rates for street parking, surface parking lots and for garage parking. The resolution also includes a new $60 fine for stopping, standing or parking on a bikeway, pursuant to Bill 28-25; a $250 hearing fee for the Residential Permit Parking (RPP) program; and the elimination of all Transportation Management District fees, pursuant to Bill 24-25.
The TE Committee recommends approving the resolution.
Community Use of Public Facilities
Review: The Council will review the $12.6 million recommended expenditures in FY27 for Community Use of Public Facilities (CUPF), which represents an increase of $276,283, or 2.3 percent, from the approved FY26 Operating Budget. CUPF is an enterprise fund and fees and charges are designed to cover costs related to its mission of facilitating the community’s use of schools and other public facilities. In addition, the County Executive recommends a 9.59 percent increase in revenues compared to the FY26 approved levels due to his proposed 7.5 to 12.5 percent fee rate increase for Montgomery County Public School (MCPS) facilities and the Silver Spring Civic Building.
The Education and Culture (E&C) Committee unanimously recommends a 7.5 percent fee rate increase across all permit holder categories for MCPS facilities and for the Silver Spring Civic Building, which would result in an 8.57 percent increase in revenues compared to FY26 revenues. No items from the County Executive’s recommended FY27 Operating Budget have been placed on the reconciliation list.
Review: The Council will review the $13.6 million recommended FY27 Operating Budget for the Urban Districts, which represents an increase of $463,276, or 3.51 percent, compared to the approved FY26 Operating Budget. The increase is comprised of compensation adjustments and other cost increases. The County’s four Urban Districts are located in Bethesda, Silver Spring, Wheaton and Friendship Heights. Funding for the district’s supports maintaining the streetscape and its investments, providing additional public amenities such as plantings, seating, shelters and art, promoting commercial and residential interests and programming cultural and community activities.
The Economic Development (ECON) Committee recommends approval of the FY27 Operating Budget as recommended by the County Executive.
Review: The Council will review the $10.6 million recommended FY27 Operating Budget for the Community Engagement Cluster, which represents an increase of $436,706, or 4.3 percent, compared to the approved FY26 Operating Budget. The recommendation includes $80,042 to realign personnel costs from the Grant Fund to the General Fund and $25,000 for the Wheaton Library and Community Recreation Center mural. The Community Engagement Cluster is a group of four County entities that share facilities, resources and support staff. The cluster is responsible for strengthening the County’s commitment to civic engagement and community service by engaging residents, organizations, business and other interest groups in the community.
The Government Operations and Fiscal Policy (GO) Committee recommends approval of the FY27 Operating Budget as recommended by the County Executive.
Department of General Services
Review: The Council will review the $59.2 million recommended FY27 Operating Budget for the Department of General Services (DGS), which represents an increase of more than $3.7 million, or 6.75 percent, compared to the approved FY26 Operating Budget. This includes an increase of more than $1.1 million for the General Fund and an increase of more than $2.5 million for the Print and Mail Fund portion of the Department of General Services operating budget. The Department of General Services serves the diverse business and service requirements of all County departments, providing government-to-government service and enabling departments to successfully complete their respective missions.
The GO Committee recommends approval of the FY27 Operating Budget for DGS as recommended by the County Executive. In addition, during this meeting the GO Committee recommended approval of a $200,000 supplemental appropriation for a new project, Takoma Park Car Wash CIP, which programs of state aid in FY26 to fund various upgrades, repairs and safety improvements for Ngyuen Car Wash Inc., located on New Hampshire Avenue in Takoma Park. This item will be placed on a future Council agenda for final action.
Department of General Services – Fleet
Review: The Council will review the County Executive’s recommended $114.4 million FY27 Operating Budget for the Fleet Management Services Internal Service Fund. The FY27 Operating Budget recommendation represents a decrease of $1.5 million, or 1.3 percent, compared to the approved FY26 Operating Budget. The decrease is primarily due to a $5 million reduction for the use of a remaining fund balance in the motor pool fund for vehicle purchases and a $3 million decrease in fuel costs at the time of the budget recommendation. The Division of Fleet Management Services is part of DGS and is responsible for planning, maintaining, acquiring and disposing of County fleet vehicles.
The TE Committee recommends approval of the FY27 operating budget for the Fleet Management Internal Services Fund as recommended by the County Executive.
The committee also recommend approval of amendments to the Fleet Electric Vehicle Charging Stations CIP, which would add $15 million over the six-year period, to continue the installation of electric vehicle chargers at County facilities.
Motor Pool Non-Departmental Account
Review: The Council will review the County Executive’s recommended $41,200 FY27 Operating Budget for the Motor Pool NDA, which represents a decrease of $1.34 million, or 97 percent, compared to the approved FY26 Operating Budget. The recommended budget includes $41,200 for the purchase of one new dedicated vehicle to support an expansion of the Mobile Crisis Team within DHHS, as well as a one-time reduction of $190,000 for five new vehicles purchased for DHHS and $1.2 million for 20 new vehicles purchased for the Sheriff’s Office in FY26.
The TE Committee recommends approval of the FY27 operating budget for the Motor Pool NDA as recommended by the County Executive.
Utilities Non-Departmental Account
Review: The Council will review the County Executive’s recommended $43 million FY27 Operating Budget for the Utilities NDA, which represents an increase of $600,000, or 1.5 percent, compared to the approved FY26 Operating Budget. The recommendation includes increases for contractually obligated lease payments for the resiliency hub and microgrid deployments, cost escalations for commodities (including electricity, natural gas, water and sewer), a net decrease for solid waste charges, and a shift of electricity charges to various services.
The TE Committee recommends approval of the FY27 operating budget for the Utilities NDA as recommended by the executive.
Review: The Council will review the $198 million recommended FY27 Operating Budget for the Recycling and Resource Management Fund, which represents an increase of nearly $6 million or 3.1 percent. This budget includes two self-supporting enterprise funds, the Solid Waste Collection Fund and Solid Waste Disposal Fund. The change is due to programmatic cost increases, with the largest being in recycling collection contracts, Oaks Landfill and Gude Landfill planning and monitoring, paper recycling equipment and operations, recycling center operations, the Residential Recycling Support Program and other contract increases.
The County Executive’s recommended FY27 Solid Waste Service Charges include a $14.33 increase for single-family residential, a $2.94 increase for multi-family residential and a $106.05 increase per 2,000 square feet of gross floor area for non-residential sectors. The recommendation includes an increase in the Transfer Station tipping fee for refuse in open top containers from $93 to $105 per ton. The tipping fee for concrete, dirt and rubble material would increase from $70 to $75 per ton.
The TE Committee recommends approval of the Solid Waste Collection Fund budget as recommended by the County Executive. The committee voted to make no recommendation on the Solid Waste Disposal Fund budget pending discussion at the full Council of the County Executive’s recommendations. For the System Benefit Charges, the TE Committee recommends deferring to the full Council. In addition, the Committee concurs with the County Executive’s recommendations for all other charges and tipping fees.”
