Recommendation
Staff recommends that the Mayor and Council adopt the attached resolution. If the Mayor and Council find the changes to the resolution acceptable a motion to amend the resolution as modified should be made, seconded and passed and then the resolution as so amended may proceed to adoption.

Discussion
The FY 2010 budget is based on a semi-automated once per week recycling and refuse program. The refuse rate for the FY 2010 adopted budget is the same as the adopted FY 2008 and FY 2009, which is an annual rate of $392.40 per single-family residence that can be billed either monthly at $32.70 or quarterly at $98.10. The fee is only prorated with the property's first and last bills. The fee is for services that are available year round, which includes the collection of: recycling, refuse, yard waste, large metal recycling and bulk items, household hazardous waste, electronics, and leaves.

For the past several years, Finance staff has provided residents with credits for temporary vacancies, without the authority to do so. The attached resolution will change this practice, and reaffirm that because recycling and refuse services are available year round, and are charged based on property ownership, not usage, that residential homeowners should not be granted credit for temporary vacancies. The City bills approximately 13,700 refuse accounts each year. Over a one-year period, 156 accounts (1.14%) have utilized vacancy credits at a loss of revenue to the Refuse Fund of over $47,000. Customers who received this credit over the past several years will be unhappy with this change, and may call to complain. Staff will work to get the message out in regards to the change through Rockville Reports.

The attached resolution will also establish the authority to charge customers for carts not returned to the City. The information on the size of chart to be billed will be coordinated between Public Works and Finance staff when an account is closed. The following are the proposed charges for carts, which are based on the City's cost to purchase the carts, that are not returned to the City: 32-gallon $39.87, 48-gallon $42.87, 64-gallon $44.87, 96-gallon $50.20.

Mayor and Council History
October 27, 2008: FY 2010 Budget Preview / Worksession - Part I
November 3, 2008: FY 2010 Budget Preview / Worksession - Part II
February 23, 2009: Final FY 2010 Budget Preview
March 23, 2009: Fiscal Year 2010 Proposed Operating Budget and Capital Improvements Program
Introduction of Ordinance to Appropriate Funds and Levy Taxes for Fiscal Year 2010
Introduction of a Resolution to Establish the Service Charge Rate for Municipal Refuse Collection
March 30, 2009: Public Hearing on the Fiscal Year 2010 Constant Yield Tax Rate
First General Budget Public Hearing on the Fiscal Year 2010 Proposed Operating Budget and Capital Improvements Program
April 13, 2009: Second General Public Hearing on the Fiscal Year 2010 Proposed Operating Budget and Capital Improvements Program
April 20, 2009: First Mayor and Council Budget Worksession - Operating Budget
April 27, 2009: Second Mayor and Council Budget Worksession - CIP Budget, Other
May 4, 2009: Final FY 2010 General Budget Public Hearing on the Fiscal Year 2010 Proposed Operating Budget and Capital Improvements Program

Public Notification and Engagement
The FY 2010 Proposed Operating and Capital Improvements Program budgets are available on the City's Web site, and hard copies are available at City Hall and the Twinbrook and Rockville libraries. Public hearings were held on March 30, April 13, and May 4, 2009. FY 2010 Adopted Operating and Capital Improvements budgets will be available to the public in July 2009.

Fiscal Impact
The adopted FY 2010 Operating budget for the Refuse Fund equals $5,493,300 and the adopted FY 2010 CIP budget equals $2,126,075. The adopted budgets are based on the annual rate of $392.40 per single-family residence for FY 2010.

Next Steps
The FY 2010 adopted budget will begin July 1, 2009 and continue through June 30, 2010. The FY 2010 budget books will be distributed in July 2009.

Attachments
Attachment A - Resolution

Department Head:



Gavin Cohen, Director of Finance
Approved on: 05/05/2009

City Manager:

Scott Ullery, City Manager
Approved on: 05/06/2009