Takoma Park, Maryland · Fiscal year 2027

Where the city’s money comes from and what it pays for

A breakdown of General Fund revenue, plus how county, state and other payments offset the costs of police, public works, library and recreation services.

Initially adopted General Fund revenue$32,956,519
Initially adopted General Fund spending$34,876,588
Budgeted use of existing fund balance$1,920,069

About these numbers: The three headline totals are from the initially adopted FY2027 budget, before later amendments. The detailed revenue and department comparisons below use the March 2026 proposed FY2027 budget, so their figures are internally consistent. Proposals and appropriations are not actual year-end receipts or spending.

1. General Fund revenue: actual dollar amounts and percentages

The proposed FY2027 General Fund revenue total was $32,882,075. The percentages below use that figure as the denominator.

Real property taxes53.76%
City-classified intergovernmental revenue21.19%
Local income taxes14.90%
Charges for city services4.15%
State highway-user revenue2.38%
Other taxes and utility-related revenue1.91%
Permits, fines, investments and other1.71%
Revenue sourceFY27 proposedShare
Real property taxes$17,678,33453.76%
Local income taxes$4,900,00014.90%
City-classified intergovernmental revenue$6,967,11721.19%
State highway-user revenue$783,8742.38%
Other taxes and utility-related revenue$626,5211.91%
Charges for city services$1,364,6004.15%
Permits, fines, investments and other receipts$561,6291.71%
Total proposed General Fund revenue$32,882,075100%

The intergovernmental accounting category includes some taxes and cable-related receipts, not just direct state and county reimbursements. State highway-user revenue appears separately.

2. The county and state payments, in detail

The city categorizes the following $6,967,117 as intergovernmental revenue in its FY2027 proposal. Not every line is a direct service reimbursement.

Revenue lineFY27 proposed
Montgomery County: in lieu of police services$4,020,521
Montgomery County: crossing guards$318,230
Montgomery County: road maintenance$933,335
Montgomery County: parks maintenance$105,065
Library aid$221,053
Maryland: police protection$525,000
State/county MOU projects$350,000
Takoma/Langley recreation agreement$85,020
Hotel/motel tax$110,000
Cable franchise fees and cable operating revenue$293,250
Bank share tax$5,643
Intergovernmental category total$6,967,117

In addition, the General Fund includes $783,874 in state highway-user revenue in its taxes and utility fees section.

3. What other revenue offsets department budgets?

These are the department-by-department funding presentations in the proposed FY2027 budget. “General Fund remainder” means expense not covered by revenues assigned to that department; it does not mean property taxes alone pay that amount.

Police Department

$10,686,049

Total proposed departmental expense

General Fund remainder · 47.45% County reimbursements · 40.60% State police aid · 4.91% State/county MOU projects · 3.28% Parking, fines and other · 3.76%
Police funding sourceAmount
County: in lieu of police$4,020,521
County: crossing guards$318,230
Maryland police protection$525,000
State/county MOU projects$350,000
Fines, parking and other departmental revenue$401,800
General Fund remainder$5,070,498
Total proposed Police Department expense$10,686,049

County and state support, including the $350,000 MOU project amount, covers 48.8% of proposed police costs. After fines and fees, the General Fund remainder is 47.5%.

Public Works

$6,801,457

Total proposed departmental expense

General Fund remainder · 72.13%County road maintenance · 13.72%State highway-user revenue · 11.53%Fees, permits and Tree Fund · 2.62%
Public Works funding sourceAmount
County: road maintenance$933,335
Maryland: highway-user revenue$783,874
Department fees, permits, sales and Tree Fund$178,300
General Fund remainder$4,905,948
Total proposed Public Works expense$6,801,457
Show the $178,300 in smaller Public Works revenue lines
Revenue lineAmount
Waste collection$78,000
Recyclable sales$600
Mulch sales$22,000
Special trash pickup$12,000
Excavation/driveway permits$700
Tree permits$20,000
Tree Fund$45,000
Total$178,300

County road payments and state highway-user revenue cover 25.2% of Public Works costs. The separate $105,065 county parks-maintenance payment is included in citywide revenue above, but not added here because it does not appear as a separate line in this departmental presentation.

4. Library and recreation

These figures show the identified revenues associated with two more proposed department budgets. The library department figure is for its operating budget; the 2017 library/community center bond is separately reported as city debt service. The recreation agreement is listed in the city's intergovernmental revenue schedule, but its specific payer is not independently identified here.

ServiceTotal expenseIdentified outside / program revenueGeneral Fund remainder
Library
$221,053 library aid + $1,500 fees
$1,809,583$222,553$1,587,030
Recreation
$85,020 agreement + $523,500 program fees
$2,405,828$608,520$1,797,308

Library renovation bond: annual debt service

$388,588 / year

The city issued a $7 million bond in 2017 to fund renovations to the library and community center. Its fixed interest rate is 3.61% and the final scheduled repayment is in 2047. The annual bond payments are separate from the library's operating budget.

FY2027 principal · $184,500 (47.48%)FY2027 interest · $204,088 (52.52%)
FY2027 scheduled paymentAmount
Principal (reduces the loan balance)$184,500
Interest (cost of borrowing)$204,088
Total annual bond debt service$388,588

Operating expenses versus debt payment

Illustrative combined annual costAmount
Proposed Library Department operating expense$1,809,583
Separately scheduled library/community center bond payment$388,588
Combined operating expense + full bond payment$2,198,171
Less identified library aid and departmental fees (as proposed)−$222,553
Illustrative amount requiring other city funding$1,975,618

Important accounting distinction: $2.20 million is an illustrative operating-plus-debt comparison, not an official Library Department budget total. The $388,588 bond is for the library and community center, and the city does not allocate the entire debt payment to library operations in the departmental budget. This amount should not be added again to the citywide General Fund total if debt service is already included there.

Fiscal yearPrincipalInterestTotal
2026$178,500$208,488$386,988
2027$184,500$204,088$388,588
2028$191,500$198,461$389,961
2029$197,500$192,620$390,120
2030$202,000$185,597$388,597

Long-term obligation: At June 30, 2025, the audited remaining bond principal was $5,707,000, with $2,823,016 in future scheduled interest, for $8,530,016 in total scheduled payments from FY2026 through FY2047. These are figures as of that audit date, not a current outstanding balance.

Source: City of Takoma Park FY2025 Audited Financial Statements, Note 10, printed page 61 (PDF page 71); see also the FY2027 Proposed Budget, Debt Service Summary, printed pages 276–279.

For Housing and Community Development, fees, grants and other departmental receipts would need to be reconciled separately before assigning a comparable offset percentage.

For Illustrative Purposes Only

This tool is designed to help residents better understand where Takoma Park's money comes from and how it is allocated across City services. Figures are drawn from publicly available City budget documents and use simplified presentations and assumptions to illustrate complex financial relationships. Some comparisons combine proposed and adopted budget figures, which may differ from actual revenues and expenditures. Departmental funding comparisons are illustrative and do not represent an official accounting of how individual tax dollars are spent.