Montgomery County Maryland Operating Budget

Budget Year / Version:

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.

Budget Overview

The total recommended FY21 Operating Budget for the Department of Finance is $93,963,467, an increase of $4,418,186 or 4.93 percent from the FY20 Approved Budget of $89,545,281. Personnel Costs comprise 18.88 percent of the budget for 130 full-time position(s) and no part-time position(s), and a total of 130.04 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 81.12 percent of the FY21 budget.

The Finance Operating Budget is comprised of a General Fund component (the Director's Office and the Divisions of Fiscal Management, Treasury, Information Technology, and Controller) and the Division of Risk Management, which is funded by the Liability and Property Coverage Self-Insurance Fund. The total FY21 Operating Budget for the General Fund component is $15,541,685 an increase of $15,733 or 0.1 percent over the FY20 approved budget of $15,525,952. Personnel Costs comprise approximately 83.06 percent of the General Fund budget for 119 full-time positions. A total of 97.67 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 16.94 percent of the budget.

The total FY21 Operating Budget for the Self-Insurance Fund component of Finance (Risk Management) is $78,421,782 an increase of $4,402,453 or 5.95 percent over the FY20 approved budget of $74,019,329. Personnel Costs comprise approximately 6.16 percent of the Self-Insurance Fund budget for 11 full-time positions. A total of 32.37 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 93.84 percent of the budget. Included in the total FTEs are 21 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.

County Priority Outcomes

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

Effective, Sustainable Government
A Growing Economy

Program 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 FY20 estimates reflect funding based on the FY20 approved budget. The FY21 and FY22 figures are performance targets based on the FY21 recommended budget and funding for comparable service levels in FY22.

Initiatives

Develop a Ten-Year Financial Plan for Montgomery County
Partnering Community Banks with the Small Business Plus! Program to boost lending to local small businesses and spur job creation in Montgomery County. The Small Business Plus! Program began with an initial total deposit of $10 million with several local community banks in 2012 and has since expanded into deposits of approximately $50 million as of December 31, 2018 with the program generating over $1.8 million in interest income and creating an estimated 2,132 jobs.
Establishing Bank On Program in Montgomery County. Bank On is a national program and movement developed to assist people in establishing a low-cost/free bank account with functionality primarily for safely depositing checks, money orders services, cash withdrawals, and electronic bill payment.
The Department of Finance has been working with multiple financial advisors including Municap and PFM Financial Advisors LLC on a comprehensive portfolio of options to ensure the financial sustainability of the White Flint Special Taxing Districts over the next 12 years.

Innovations and Productivity Improvements

Established a new Financial Analysis, Audit, and Compliance (FAAC) section in the Division of the Controller which is responsible for performing extensive financial analysis to improve financial reporting, advancing functions in Oracle eBusiness financial modules, posting audits of financial transactions, and ensures compliance with Department and Countywide policies.
The County will migrate its online tax billing system, MUNIS on- premise to the vendor's Cloud Software-as-a-Service solution.
Developed a disaster recovery and continuity of operations solution for the County's Enterprise Resource Planning (ERP) System in collaboration with the Office of Emergency Management and Homeland Security and the Department of Technology Services.
Implemented an online credit card and e-check payment option for the Department of Health and Human Services and Alcohol Beverage Services (formerly, Department of Liquor Control).

Program Descriptions

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 and...

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...

Program Performance Measures	Actual FY18	Actual FY19	Estimated FY20	Target FY21	Target FY22
Make Office Vacancies Extinct (MOVE) Program: Square feet of office space leased	126,408	122,316	130,000	140,000	150,000
Interest Rate - True Interest Cost for Montgomery County General Obligation Bonds (the most common debt instrument used by the County) ¹	1.7%	3.3%	3.3%	3.8%	3.8%
Interest Rate Benchmarking - County General Obligation (GO) vs. Municipal Market Data Index (basis point spread) ²	3.0	7.0	0.0	0.0	0.0
Investment Return Benchmarking - County Return vs. S&P Local Government Investment Pool Index (basis point spread)	18	22	12	12	12
Revenue forecasting - Percent variance between actual revenue and projected revenue	-3.31%	-1.80%	0.00%	0	0
Receive the Government Finance Officers Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting ³	Received	Expected	Expected	Expected	Expected
Investment Return - Rate of return on Montgomery County's investments	1.34%	2.33%	1.65%	1.15%	1.15%
Bond Rating - Rating given to Montgomery County by Fitch, Moody's, and Standard and Poor's (Bond ratings are a measure of the quality and safety of a bond and are based on the issuer's financial condition)	AAA	AAA	AAA	AAA	AAA

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...

Program Performance Measures	Actual FY18	Actual FY19	Estimated FY20	Target FY21	Target FY22
Electronic payments (credit card and ACH) transactions processed by the County's credit card processor and bank	N/A	4,331,646	4,500,000	4,700,000	4,900,000
Average number of days to close payroll service requests	4.9	3.1	2.8
Workflows, tasks, and processes streamlined utilizing existing or new technologies	N/A	23	25

Controller

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...

Program Performance Measures	Actual FY18	Actual FY19	Estimated FY20	Target FY21	Target FY22
Procurement Card rebate revenue generated	$724,221	$770,260	$775,000	$800,000	$825,000
Procurement Card transactions processed	41,902	43,321	43,500	43,500	43,750
Vendor payments issued ¹	128,866	118,086	120,000	120,000	120,000
Journal entries prepared by Finance	1,548	1,550	2,000	2,000	2,000
Journal entries reviewed and posted	3,046	3,600	3,650	3,650	3,650
Grant reports produced	575	552	552	552	552
Paychecks and payroll advices issued for employees ²	297,715	298,471	300,000	300,000	300,000
Pension and long-term disability (LTD2) payroll payments processed	63,064	75,254	80,000	80,000	80,000
Percent of non-compliant payments – Direct purchase orders created the same day as invoice date and duplicate dollars per total invoices	0.292%	0.293%	0.289%
Percent of payroll errors per sum of dollars under and overpaid	0.301%	0.299%	0.297%

Treasury

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,...

Program Performance Measures	Actual FY18	Actual FY19	Estimated FY20	Target FY21	Target FY22
Tax related number of service request tickets transferred from MC311 Call Center to Treasury	4,267	3,220	3,500	3,750	3,750
Property tax accounts billed	376,553	376,259	376,300	377,000	379,000
Transfer tax transactions processed ¹	20,857	21,048	23,000	23,000	23,000
Cashier transactions processed	116,916	91,977	93,000	93,000	93,000

Risk Management

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. The Montgomery County Self-Insurance Program, established under County Code 20-37, provides comprehensive property and casualty insurance for the...

Program Performance Measures	Actual FY18	Actual FY19	Estimated FY20	Target FY21	Target FY22
Training classes conducted by Safety and Health Specialists ¹	1,469	462	2,000	2,000	2,000
Workers Compensation - Cost per $100 of payroll	$2.88	$2.84	$2.84	2.84	2.84
Workers Compensation - Number of Montgomery County Government cases resulting in lost work time	554	528	517	508	498

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...

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...

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...

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,...

Tax Operations

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...

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...

Legal Services

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2021 RECOMMENDED Budget

Archives

Data

Budget Snapshot

94.0M FY21 Recommended
Operating Budget

130.0 Full Time
Equivalents

Budget Trends

Program Contacts

Contact Jedediah Millard of the Department of Finance at 240.777.8855 or Estela Boronat de Gomes of the Office of Management and Budget at 240.777.2785 for more information regarding this department's operating budget.

Related Links

Montgomery County MD Home Page

Budget Summary

Title	Actual FY19	Budget FY20	Estimate FY20	Recommended FY21	%Chg Bud/Rec
COUNTY GENERAL FUND
EXPENDITURES
Salaries and Wages	7739974.00	9948205.00	8425747.00	10240860.00	2.9
Employee Benefits	2793109.00	2842233.00	3053376.00	2668155.00	-6.1
County General Fund Personnel Costs	10533083.00	12790438.00	11479123.00	12909015.00	0.9
Operating Expenses	3541509.00	2735514.00	4014557.00	2632670.00	-3.8
County General Fund Expenditures	14074592.00	15525952.00	15493680.00	15541685.00	0.1
PERSONNEL
Full-Time	121.00	124.00	124.00	119.00	-4.0
Part-Time	0.00	0.00	0.00	0.00	0.0
FTEs	94.90	98.92	98.92	97.67	-1.3
REVENUES
Miscellaneous Revenues	559993.00	700000.00	700000.00	700000.00	0.0
Other Charges/Fees	513978.00	514500.00	498500.00	505200.00	-1.8
Other Fines/Forfeitures	17243.00	15000.00	15000.00	15000.00	0.0
Other Intergovernmental	433953.00	473970.00	510920.00	514230.00	8.5
County General Fund Revenues	1525167.00	1703470.00	1724420.00	1734430.00	1.8

SELF INSURANCE INTERNAL SERVICE FUND
EXPENDITURES
Salaries and Wages	2597186.00	3671599.00	3244950.00	3826719.00	4.2
Employee Benefits	822177.00	1074954.00	979647.00	1003665.00	-6.6
Self Insurance Internal Service Fund Personnel Costs	3419363.00	4746553.00	4224597.00	4830384.00	1.8
Operating Expenses	63938020.00	69272776.00	69783921.00	73591398.00	6.2
Self Insurance Internal Service Fund Expenditures	67357383.00	74019329.00	74008518.00	78421782.00	5.9
PERSONNEL
Full-Time	11.00	11.00	11.00	11.00	0.0
Part-Time	0.00	0.00	0.00	0.00	0.0
FTEs	31.87	31.87	31.87	32.37	1.6
REVENUES
Investment Income	4556909.00	1000000.00	1000000.00	1628727.00	62.9
Miscellaneous Revenues	578956.00	1000000.00	1000000.00	1000000.00	0.0
Self Insurance Revenues	68944588.00	73404480.00	73404480.00	77514144.00	5.6
Self Insurance Internal Service Fund Revenues	74080453.00	75404480.00	75404480.00	80142871.00	6.3

CAPITAL FUND
EXPENDITURES
PERSONNEL

DEPARTMENT TOTALS
Total Expenditures	81431975.00	89545281.00	89502198.00	93963467.00	4.9
Total Full-Time Positions	132.00	135.00	135.00	130.00	-3.7
Total Part-Time Positions	0.00	0.00	0.00	0.00	0.0
Total FTEs	126.77	130.79	130.79	130.04	-0.6
Total Revenues	75605620.00	77107950.00	77128900.00	81877301.00	6.2

FY21 Recommended Changes

Title	Expenditures	FTEs
COUNTY GENERAL FUND
Other Adjustments (with no service impacts)
Increase Cost: FY21 Compensation Adjustment	214503	0.00
FY21 RECOMMENDED	214503	0.00

SELF INSURANCE INTERNAL SERVICE FUND
Other Adjustments (with no service impacts)
Increase Cost: FY21 Compensation Adjustment	73032	0.00
FY21 RECOMMENDED	73032	0.00

Program Summary

Program Name	FY20 APPR Expenditures	FY20 APPR FTEs	FY21 REC Expenditures	FY21 REC FTEs
Controller	973619	8.88	6222798	49.87
Fiscal Management	2182499	12.00	2042566	10.75
Information Technology	1647183	3.00	1599064	4.00
Operations and Administration	5144071	19.37	4063391	14.37
Risk Management	0	0.00	77551254	28.00
Treasury	476765	4.90	2484394	23.05
Accounts Receivable	524463	6.00	0	0.00
General Accounting	1979885	15.99	0	0.00
Grants Accounting	557992	5.00	0	0.00
Payroll	1295986	10.00	0	0.00
Tax Operations	1993415	18.15	0	0.00
Insurance	68893645	4.00	0	0.00
Occupational Safety and Health	764014	3.00	0	0.00
Legal Services	3111744	20.50	0	0.00
Total	89545281	130.79	93963467	130.04

Charges to Other Departments

Charged Department	Charged Fund	FY20 Total$	FY20 FTES	FY21 Total$	FY21 FTES
COUNTY GENERAL FUND
Human Resources	Employee Health Self Insurance	126880	0.75	104170	0.75
Human Resources	Retiree Health Benefits Trust Fund	37110	0.25	38650	0.25
General Services	Central Duplicating (Printing & Mail)	6760	0.05	6980	0.05
Transportation	Leaf Vacuuming	245720	0.43	241830	0.43
Parking District Services	Bethesda Parking	32500	0.24	33560	0.24
Parking District Services	Silver Spring Parking	36800	0.27	38000	0.27
Parking District Services	Wheaton Parking	12370	0.09	12790	0.09
Community Use of Public Facilities	Community Use of Public Facilities	49950	0.37	51480	0.37
Recreation	Recreation	44010	0.33	45300	0.33
Permitting Services	Permitting Services	13200	0.10	13590	0.10
Environmental Protection	Water Quality Protection	961595	6.00	939867	6.00
Recycling and Resource Management	Solid Waste Disposal	587636	4.38	581270	4.38
Recycling and Resource Management	Solid Waste Collection	271466	0.64	266990	0.64
Alcohol Beverage Services	Liquor	815361	6.50	821265	6.50
CIP	Capital Fund	151872	1.00	39397	0.25
Non-Departmental Accounts	Retirement Fund (ERS)	40152	0.30	41366	0.30
Non-Departmental Accounts	Retiree Health Benefits Trust Fund	4708	0.05	4884	0.05
Non-Departmental Accounts	RSP-Disability Benefits (LTD2)	1480	0.01	1550	0.01
NDA - Conference Center	General Fund	156599	1.00	0	0.00
NDA - Incubator Programs - Economic Development Partnership	General Fund	111288	1.00	0	0.00
Economic Development Fund	Economic Development Fund	157046	1.00	163335	1.00
Total		3864503	24.76	3446274	22.01

Funding Parameter Items ($000s)

Title	FY21	FY22	FY23	FY24	FY25	FY26
COUNTY GENERAL FUND
EXPENDITURES
FY21 Recommended	15542.000000	15542.000000	15542.000000	15542.000000	15542.000000	15542.000000
No inflation or compensation change is included in outyear projections.
Labor Contracts	0.000000	58.000000	58.000000	58.000000	58.000000	58.000000
These figures represent the estimated annualized cost of general wage adjustments, service increments, and other negotiated items.
Subtotal Expenditures	15542.000000	15600.000000	15600.000000	15600.000000	15600.000000	15600.000000

SELF INSURANCE INTERNAL SERVICE FUND
EXPENDITURES
FY21 Recommended	78422.000000	78422.000000	78422.000000	78422.000000	78422.000000	78422.000000
No inflation or compensation change is included in outyear projections.
Retiree Health Insurance Pre-funding	0.000000	-2.000000	-4.000000	-4.000000	-4.000000	-1.000000

Labor Contracts	0.000000	31.000000	31.000000	31.000000	31.000000	31.000000
These figures represent the estimated annualized cost of general wage adjustments, service increments, and other negotiated items.
Subtotal Expenditures	78422.000000	78451.000000	78449.000000	78449.000000	78449.000000	78452.000000