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Mission Statement

The mission of the Department of Finance is to prudently manage financial operations, recommend and implement sound fiscal policies, safeguard public assets, and encourage a safe environment on public property.

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Budget Overview

The total approved FY19 Operating Budget for the Department of Finance is $83,942,265, an increase of $2,540,552 or 3.12 percent from the FY18 Approved Budget of $81,401,713. Personnel Costs comprise 19.96 percent of the budget for 132 full-time position(s) and no part-time position(s), and a total of 126.77 FTEs. Total FTEs may include seasonal or temporary positions and may also reflect workforce charged to or from other departments or funds. Operating Expenses account for the remaining 80.04 percent of the FY19 budget.

The Finance Operating Budget is comprised of a General Fund component (the Director's Office and the Divisions of Fiscal Management, Treasury and Controller) and the Division of Risk Management, which is funded by the Liability and Property Coverage Self-Insurance Fund. The total approved FY19 Operating Budget for the General Fund component is $14,498,017 an increase of $51,921 or 0.36 percent over the FY18 approved budget of $14,446,096. Personnel Costs comprise approximately 83.58 percent of the General Fund budget for 121 full-time positions. A total of 94.90 FTEs includes these positions as well as any seasonal, temporary, and positions charged to or from other departments or funds. Operating Expenses account for the remaining 16.42 percent of the budget.

The total FY19 Operating Budget for the Self-Insurance Fund component of Finance (Risk Management) is $69,444,248, an increase of $2,488,631 or 3.72 percent over the FY18 approved budget of $66,955,617. Personnel Costs comprise approximately 6.68 percent of the Self-Insurance Fund budget for 11 full-time positions. A total of 31.87 FTEs includes these positions as well as any seasonal, temporary, and positions charged to or from other departments or funds. Operating Expenses account for the remaining 93.32 percent of the budget. Included in the total FTEs are 20.50 FTEs charged to the Self-Insurance Fund by the Office of the County Attorney and 0.37 FTE charged by the General Fund component of Finance (Controller Division) for services provided in support of Risk Management.

Linkage to County Result Areas

While this program area supports all eight of the County Result Areas, the following are emphasized:

  • A Responsive, Accountable County Government
  • Strong and Vibrant Economy

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Department Performance Measures

Performance measures for this department are included below (where applicable), with multi-program measures displayed at the front of this section and program-specific measures shown with the relevant program. The FY18 estimates reflect funding based on the FY18 approved budget. The FY19 and FY20 figures are performance targets based on the FY19 approved budget and funding for comparable service levels in FY20.

Accomplishments

  • Retained the County's AAA bond rating from all three major credit rating agencies in the Fall of 2017. In March of 2017, Fitch upgraded the Water Quality Protection Charge Revenue Bond Series 2012A and 2016 to AAA from AA and the West Germantown Refunding Bond Series 2014 to AAA from A+.

  • Received the GFOA Certificate of Achievement for Excellence in Financial Reporting for the FY16 CAFR.

  • The County's Commercial Property-Assessed Clean Energy (C-PACE) Program completed its first project in December 2016, within the first year of the program's operation-a $1.4 million project that was the first of its kind in Montgomery County and the State of Maryland. The Program has completed 2 additional projects to date with a combined project cost of $1.1 million, and 8 more project applications have been approved totaling $5.2 million and are expected to be complete by the end of FY18. The program was awarded a National Association of Counties (NACo) Achievement Award in FY17.

  • Finance staff is working with the State Board of Elections, to implement the County's Public Election Fund. This Fund provides matching County funds to eligible candidates running for an elected office of County Executive or County Councilmember. The Fund
    is intended to incentivize greater participation of small money donors to eligible candidates through the Public Campaign Financing initiative. As of February 28, 2018, the Program has 33 active candidates who have filed an intent to participate, with fifteen of
    those candidates qualifying to receive matching funds worth $1,837,779.
  • Implemented Bill 42-16 Property Tax Credit for Elderly Individuals and Military Retirees: When the bill was being introduced, it was estimated that Finance would receive about 3,500 applications. Treasury has received 5,737 applications by the September 1, 2017 deadline and issued 4,718 credits for a total of $3,199,448.

  • Implemented the Income Tax Offset Credit module in the Tax Assessment System that removes the $692 credit to non-eligible properties. As of March 1, 2018, 5,727 accounts have been removed, saving the County nearly $4.0 million.

  • Performed a security assessment of all operations in the County that accept credit cards payments to ensure that each organization is operating in a Payment Card Industry Data Security Standard (PCI-DSS) compliant manner.
  • The County's "Small Business Plus!" program, now in its fifth year, generated $128 million in new small business loans, 285 new jobs, and $249,000 in interest income in 2016 as a result of the County depositing up to $50 million with participating local banks. Since the program's inception in 2012, a total of 1,354 new jobs have been created and $608,000 in interest income has been generated.

  • The average daily investment portfolio in FY17 increased to $845 million from $730 million in FY16. More importantly, investment income jumped from $2.8 million in FY16 to over $6.0 million in FY17, with an average portfolio yield of 0.71% in FY17 (compared to 0.39% in FY16). This 0.71% average yield also compares favorably versus the benchmark yield of 0.59% (S&P Local Government Index) or the average 3 month US Treasury yield of 0.56%.
  • Successfully issued $340 million in GO Bonds in FY17 with an interest rate (True Interest Cost) of 3.281% and issued an equivalent amount of Commercial Paper.

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Initiatives

  • Finance's Treasury division is working with IT staff on multiple initiatives including re-engineering procedures for tax refunds, testing and implementing new Munis modules for web display of property tax bills, and implementing a new property tax payment platform.

  • Upgrading Kronos Workforce TimeKeeper (MCTIME) from 6.2 to 8.2.
  • Upgrading the Tyler Technologies Munis property tax billing system from 9.4 to 11.3.
  • Replacing the custom in-house real and personal property tax web billing applications with Citizens Self Service from Tyler Technologies.
  • Risk Management is working on the launch of additional safety-related electronic applications for Montgomery County Self Insurance Program (MCSIP) agency members, refining the Contract Tracking System to automate functions and reports, and working with the State to develop studies designed to result in guidelines for vocational rehabilitation in order to ensure efficacy of approved vocational rehabilitation programs for injured workers.
  • The department manages the following growth and economic development initiatives, funded by the Economic Development Fund. They include:

      • The MOVE program that continues to reduce commercial office vacancy, attracting new businesses and jobs by assisting businesses in leasing office space to support their growth,
      • The Montgomery County Small Business Assistance Program (SBAP) and the Impact Assistance Fund (IAF) that provides financial and/or technical assistance to certain financially healthy small businesses in designated areas of the County adversely impacted by a redevelopment project initiated by the County, and
      • Grants and tax credits to assist businesses to establish headquarters and expand in the county, as well as funding to assist in the relocation of a major Fortune 500 company to downtown Bethesda.

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Innovations and Productivity Improvements

  • Migrate MUNIS, one of the County's property tax billing systems, to a Cloud platform.

  • Use of Robotic Processing Automation software to perform repetitive and manually intensive jobs on software platforms that do not allow automation. This reduces staffing costs and increases accuracy.

  • MCPay - The Department of Finance will be implementing credit card and electronic payment solutions and re-engineering existing solutions that will decrease the total cost of ownership for the County. This will entail creating a centralized payment portal, process automation, reducing the level of effort for on-boarding departments that wish to process credit cards, and collaborating with the Merchant Service Provider to reduce transaction costs.

Program Descriptions

  Fiscal Management

This program provides effective management of County capital and operating funds and the fiscal analysis and issue management associated with master plan development, economic development, and legislative issues. It is also responsible for accurate revenue and economic forecasting and publishing reports on economic and revenue analysis on a monthly and...

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  Information Technology

This program provides planning, direction, and support for finance and core business systems, technology, and business processes to support effective and efficient achievement of the Department's mission. Activities are proactively coordinated with the Department of Technology Services, other County departments, vendors, and Department staff to ensure consistency of Department systems...

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  Accounts Payable

This program is responsible for timely and accurate payments to vendors for goods and services provided to the County; complying with County policies and procedures; and carrying out State and Federal reporting requirements. Payments to vendors are initiated and approved by individual departments. The Accounts Payable program is...

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  Accounts Receivable

This program is responsible for the timely receipt and accounting for monies due to the County from residents, businesses, and government agencies. In conjunction with the implementation of the Enterprise Resource Planning (ERP) system and associated best practices, this program provides for development of standardized policies and procedures, and provision...

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  General Accounting

This program is responsible for the analysis, interpretation, and presentation of the County's financial position and results of operations through timely, accurate, and professional financial reports. These reports provide public assurance as to the accountability and integrity of the use of County resources; adherence to budgetary policies established by...

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  Grants Accounting

This program is responsible for the analysis, interpretation, and presentation of the County's financial position relating to grants through timely, accurate, and professional financial reports. These reports provide public assurance as to the accountability and integrity of the use of Federal, State, and other outside resources; adherence to budgetary policies...

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  Payroll

This program is responsible for managing and maintaining the County's payroll system and functions as prescribed by Federal, State, and County laws, and local regulations. The program provides timely and accurate payroll disbursements to County employees, accounts for payroll deductions, issues W-2 statements to account for pre-tax and post-tax benefits,...

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  Tax Operations

This program is responsible for the timely and accurate collection and processing of all County administered taxes, including property taxes (which are the County's largest revenue source), transfer and recordation taxes (relating to real property transfers and recordation of instruments of writing), and several excise taxes (fuel/energy, telephone, hotel/motel, carryout...

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  Treasury Operations

This program is responsible for providing coordination and oversight of treasury operations and customer services through the cashiering function. All money received by the County, directly through the Treasury cashiering operation, from other County agencies, or through the internet and bank lockbox operation, is processed, administered, and recorded in...

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  Insurance

The Montgomery County Self-Insurance Program, established under County Code 20-37, provides comprehensive property and casualty insurance for the County and participating agencies. The program is funded through contributions from the agencies, which are based upon an annual actuarial analysis of their exposures and outstanding and projected future claims. The program...

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  Occupational Safety and Health

This program operates a proactive safety program and coordinates reporting to Federal and State regulatory agencies on health and safety issues. The State-required injury reports and the mandated safety training and record keeping are completed by the Safety Section of Risk Management on schedule. The program responds promptly to inspections...

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  Legal Services

This program funds activities of the Office of the County Attorney, which provides legal services including investigation, negotiation, and litigation on behalf of the County and agencies that participate in the Self-Insurance Program....

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  Operations and Administration

This program includes operational support for the Department as well as the administrative portions of the Director's Office, the Division of the Controller, the Treasury Division, and the Division of Risk Management. The program provides support for efficient, effective, and timely accomplishment of the Department's mission, including budget development...

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Budget Trends
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Program Contacts

Contact Jedediah Millard of the Department of Finance at 240.777.8855 or Anita Aryeetey of the Office of Management and Budget at 240.777.2784 for more information regarding this department's operating budget.

Related Links
Budget Summary
TitleActual
FY17
Budget
FY18
Estimate
FY18
Approved
FY19
%Chg
Bud/App
COUNTY GENERAL FUND
EXPENDITURES
Salaries and Wages7661596.009527125.00 8108318.00 9560198.000.4
Employee Benefits2850120.002604361.00 2866840.00 2556976.00-1.8
County General Fund Personnel Costs10511716.0012131486.00 10975158.00 12117174.00-0.1
Operating Expenses3433091.002314610.00 3196100.00 2380843.002.9
County General Fund Expenditures13944807.0014446096.00 14171258.00 14498017.000.4
PERSONNEL
Full-Time111.00121.00 121.00 121.000.0
Part-Time0.000.00 0.00 0.000.0
FTEs91.6593.90 93.90 94.901.1
REVENUES
Miscellaneous Revenues607468.00450000.00 507000.00 507000.0012.7
Other Charges/Fees492038.00367220.00 367220.00 366300.00-0.3
Other Fines/Forfeitures13861.0010000.00 10000.00 5000.00-50.0
Other Intergovernmental239311.00373810.00 372310.00 418000.0011.8
County General Fund Revenues1352678.001201030.00 1256530.00 1296300.007.9
 
SELF INSURANCE INTERNAL SERVICE FUND
EXPENDITURES
Salaries and Wages3300414.003586713.00 3304579.00 3575288.00-0.3
Employee Benefits977239.001074732.00 1031132.00 1065787.00-0.8
Self Insurance Internal Service Fund Personnel Costs4277653.004661445.00 4335711.00 4641075.00-0.4
Operating Expenses56440431.0062294172.00 62615267.00 64803173.004.0
Self Insurance Internal Service Fund Expenditures60718084.0066955617.00 66950978.00 69444248.003.7
PERSONNEL
Full-Time10.0011.00 11.00 11.000.0
Part-Time0.000.00 0.00 0.000.0
FTEs30.1231.12 31.12 31.872.4
REVENUES
Investment Income1020399.00623210.00 623210.00 850000.0036.4
Miscellaneous Revenues574405.000.00 0.00 0.000.0
Self Insurance Revenues62427231.0067554102.00 67554102.00 69423933.002.8
Self Insurance Internal Service Fund Revenues64022035.0068177312.00 68177312.00 70273933.003.1
 
CAPITAL FUND
EXPENDITURES
PERSONNEL
 
DEPARTMENT TOTALS
Total Expenditures74662891.0081401713.00 81122236.00 83942265.003.1
Total Full-Time Positions121.00132.00 132.00 132.000.0
Total Part-Time Positions0.000.00 0.00 0.000.0
Total FTEs121.77125.02 125.02 126.771.4
Total Revenues65374713.0069378342.00 69433842.00 71570233.003.2
FY19 Approved Changes
TitleExpendituresFTEs
COUNTY GENERAL FUND
FY18 ORIGINAL APPROPRIATION1444609693.90
Other Adjustments (with no service impacts)
Increase Cost: FY19 Compensation Adjustment2901240.00
Increase Cost: Annualization of FY18 Personnel Costs1671361.00
Increase Cost: Annualization of FY18 Operating Expenses574900.00
Increase Cost: Contractual Resources for Indirect Cost Analysis and Services400000.00
Increase Cost: IT Financial Systems Applications - Ongoing Maintenance345500.00
Increase Cost: Annual PCI and ACH Industry Compliance 57200.00
Increase Cost: Printing and Mail8550.00
Decrease Cost: Retirement Adjustment-376130.00
Decrease Cost: Chargeback for Billing, Collection and Processing Services-2366910.00
Decrease Cost: Increase Lapse-2696500.00
FY19 APPROVED1449801794.90
 
SELF INSURANCE INTERNAL SERVICE FUND
FY18 ORIGINAL APPROPRIATION6695561731.12
Other Adjustments (with no service impacts)
Increase Cost: Claims Expense [Insurance]23377480.00
Increase Cost: Claims Service Contract Administrative Costs [Insurance]1178700.00
Increase Cost: County Attorney Charges for Electronically Stored Information System [Legal Services]1002410.75
Increase Cost: FY19 Compensation Adjustment954100.00
Increase Cost: Rent [Operations and Administration]519300.00
Increase Cost: Professional Services - Audits [Insurance]400000.00
Increase Cost: Workers' Compensation Tax increase [Insurance]33680.00
Increase Cost: OPEB Adjustment1900.00
Increase Cost: Printing and Mail780.00
Decrease Cost: Motor Pool Adjustment-21830.00
Decrease Cost: Retirement Adjustment-295160.00
Decrease Cost: Professional Services - Claims Audit Contract [Operations and Administration]-400000.00
Decrease Cost: Annualization of FY18 Personnel Costs-1865050.00
FY19 APPROVED6944424831.87
Program Summary
Program NameFY18 APPR
Expenditures
FY18 APPR
FTEs
FY19 APPR
Expenditures
FY19 APPR
FTEs
Fiscal Management189030911.00194737111.00
Information Technology13782543.0013999033.00
Accounts Payable8100117.758249647.75
Accounts Receivable6454385.503158035.50
General Accounting201021416.65206643616.65
Grants Accounting6371645.006245275.00
Payroll120942910.00127427710.00
Tax Operations194540518.10178033118.10
Treasury Operations4476684.904542164.90
Insurance622721404.00647676084.00
Occupational Safety and Health7999483.008013293.00
Legal Services286561519.75299711620.50
Operations and Administration449011816.37468838417.37
Total81401713125.0283942265126.77
Charges to Other Departments
Charged DepartmentCharged FundFY18
Total$
FY18
FTES
FY19
Total$
FY19
FTES
COUNTY GENERAL FUND
Human ResourcesEmployee Health Self Insurance1220000.751220400.75
Human ResourcesRetiree Health Benefits Trust Fund421600.25351500.25
General ServicesCentral Duplicating (Printing & Mail)65700.0564300.05
TransportationLeaf Vacuuming2165420.432447500.43
Parking District ServicesBethesda Parking316400.24308700.24
Parking District ServicesSilver Spring Parking362300.27349400.27
Parking District ServicesMontgomery Hills Parking00.0000.00
Parking District ServicesWheaton Parking123900.09117500.09
Community Use of Public FacilitiesCommunity Use of Public Facilities510100.37474600.37
RecreationRecreation442700.33418400.33
Permitting ServicesPermitting Services122100.10125500.10
Environmental ProtectionWater Quality Protection8536946.009596526.00
Solid Waste ServicesSolid Waste Disposal5219554.385827084.38
Solid Waste ServicesSolid Waste Collection2394560.642705500.64
Liquor ControlLiquor10039269.0010260818.00
CIPCapital Fund1452931.001524121.00
Non-Departmental AccountsEmployees Retirement Savings Plan (RSP)141640.10122460.10
Non-Departmental AccountsRetirement Fund (ERS)789380.54688520.54
Non-Departmental AccountsRetiree Health Benefits Trust Fund23640.0224060.02
Non-Departmental AccountsBIT 457 Deferred Comp. Plan74240.0666260.06
Non-Departmental AccountsRSP-Disability Benefits (LTD2)269800.16224800.16
NDA - Conference CenterGeneral Fund1295741.001455491.00
Economic Development FundEconomic Development Fund1438331.001524121.00
Total374262326.78398975425.78
Future Fiscal Impacts ($000s)
TitleFY19FY20FY21FY22FY23FY24
COUNTY GENERAL FUND
EXPENDITURES
FY19 Approved14498.00000014498.00000014498.00000014498.00000014498.00000014498.000000
No inflation or compensation change is included in outyear projections.
Restore One-Time Lapse Increase0.000000343.000000343.000000343.000000343.000000343.000000
Restoration of one-time lapse adjustment in the budget development year
Labor Contracts0.000000135.000000135.000000135.000000135.000000135.000000
These figures represent the estimated annualized cost of general wage adjustments, service increments, and other negotiated items.
Subtotal Expenditures14498.00000014976.00000014976.00000014976.00000014976.00000014976.000000
 
SELF INSURANCE INTERNAL SERVICE FUND
EXPENDITURES
FY19 Approved69444.00000069444.00000069444.00000069444.00000069444.00000069444.000000
No inflation or compensation change is included in outyear projections.
Retiree Health Insurance Pre-funding0.0000001.0000001.0000001.0000001.0000001.000000
Labor Contracts0.00000050.00000050.00000050.00000050.00000050.000000
These figures represent the estimated annualized cost of general wage adjustments, service increments, and other negotiated items.
Subtotal Expenditures69444.00000069495.00000069495.00000069495.00000069495.00000069495.000000