Budget Year / Version:

Program Description

  Payments to Municipalities

The Montgomery County Municipal Revenue Program, authorized by Chapter 30A of the Montgomery County Code, reimburses municipalities for those public services they provide that would otherwise be provided by the County. The current reimbursement policy goes beyond State law, Section 6-305 of the Tax-Property Article, which requires the County to provide to municipalities only the Property Tax-funded portion of those costs. The County Executive negotiated a new formula with the County's municipal partners over the course of 2021. Changes to the calculation formula were adopted by the County Council on March 1, 2022, with the enactment of Expedited Bill 2-22.

Under Expedited Bill 2-22, a municipality would be reimbursed by the County based upon the County Executive's approximation of the costs that the County would incur if it were to provide the municipality with transportation, police, crossing guards, and park maintenance services. Specifically, as the exact payment amount for the current year cannot be determined until both municipal and County books are closed, reimbursements are based on the final audited cost of performing eligible services during the fiscal year two years prior to the budget year. The new law also provides for a phased-in implementation of the new formula calculation for FY23 (80 percent of the calculation), FY24 (90 percent of the calculation), and FY25 (100 percent of the calculation). The amounts included in the FY23 budget for this program reflect the required 80 percent phased-in payment.

Finally, the new calculation formula incorporates payments to Takoma Park under the separate Takoma Park Police Rebate Non-Departmental Account into this budget beginning in FY23.

This does not include the estimated Municipalities' Speed Camera Allocation of $129,344

Program Contacts

Contact Kathleen Hynes of the Office of Management and Budget at 240.777.2767 for more information regarding the operating budget for the Non-Departmental Accounts.


Program Budget Changes

FY23 Approved ChangesExpendituresFTEs
FY22 Approved91224110.00
Increase Cost: New Bill 2-22 Municipal Tax Duplication81472790.00
FY23 Approved172696900.00