By MDBayNews Staff
Montgomery County leaders are touting their Fiscal Year 2026 (FY26) budget as a model of fiscal restraint: no increase in property tax rates, no increase in the county income tax rate, and a unanimous vote from the County Council to adopt a $7.6 billion operating budget.
But for many residents, the bottom line will still feel heavier.
The most visible change? The monthly 9-1-1 fee.
The 9-1-1 Fee: First Increase Since 2003
The county doubled its 9-1-1 surcharge from $0.75 to $1.47 per telephone line per month. It’s the first increase in more than two decades and is projected to generate approximately $12.5 million annually to support emergency communications center operations.
County officials argue the move is long overdue. Public safety infrastructure, technology upgrades, and staffing costs have all risen since 2003. The council will now review the fee annually going forward.
On its own, an extra 72 cents per line per month may not seem dramatic. But in a county where residents are already facing rising costs across the board, it reinforces a broader pattern: no headline tax hikes, but plenty of incremental increases.
Property Taxes: Same Rate, Higher Bills
The council rejected earlier proposals from the County Executive that would have raised both property tax rates and income tax rates, including a supplemental education tax proposal and a potential shift to a higher income tax bracket structure.
That decision helped avoid a politically explosive tax increase.
However, rates are only half the story.
Residential property assessments in Montgomery County rose by roughly 6.6% on average. Even with no change in the tax rate, higher assessed values mean higher bills. The average homeowner is expected to see about a $31 monthly increase due to assessments alone.
The county’s $692 Homestead Property Tax Credit for eligible owner-occupied homes offers partial relief. But not all properties qualify, and higher-value homes may still experience noticeable increases.
For residents who hear “no tax hike” and then open a larger tax bill, the distinction between rate and assessment feels academic.
Water, Sewer, and Utility Pressures
Outside the county’s direct tax authority, other cost increases are hitting residents’ monthly budgets.
The Washington Suburban Sanitary Commission (WSSC) approved water and sewer rate increases of approximately 9.5–9.8% on volumetric usage and fixed fees, along with a 2.5% increase in the System Development Charge. These bi-county utility charges appear directly on monthly bills and fund infrastructure, maintenance, and system upgrades.
While not technically part of the county’s tax rate, they are very real costs for households.
Additionally, the Water Quality Protection Charge — which funds stormwater compliance and environmental mandates — saw proposed increases during the budget process, adding another line item to consolidated tax bills.
For many families, the cumulative impact of water, sewer, and stormwater adjustments can rival or exceed the 9-1-1 surcharge increase.
Solid Waste and Other Fee Adjustments
Early budget proposals included steep hikes in solid waste and recycling fees, some exceeding 30% for single-family homes and more for certain multi-family or commercial properties. Final adopted increases were moderated but still represent noticeable bumps for homeowners and property managers.
Other departmental fees saw adjustments as well — including certain permits, inspections, rental-related charges, and Community Use of Public Facilities fees. These are targeted rather than broad-based increases, but for those who rely on these services, they add up.
To its credit, the council also eliminated Ride-On bus fares, providing relief for commuters who rely on public transit. That move reflects a priority on accessibility and mobility, especially for lower-income residents.
Education Funding and Fiscal Restraint
A central feature of the FY26 budget is historic funding for Montgomery County Public Schools. Councilmembers emphasized their commitment to education and safety-net services while maintaining reserves above 11%.
In a high-cost jurisdiction like Montgomery County, leaders argue that balancing education investment with fiscal stability required difficult trade-offs.
From a center-right perspective, however, the question is sustainability.
Montgomery County’s operating budget continues to grow, and while broad tax rates were held steady this year, structural cost drivers remain: rising assessments, escalating infrastructure demands, education funding pressures, and state-level mandates that cascade down to local budgets.
The Political Framing vs. The Practical Reality
Politically, the council achieved an important objective: they avoided the optics of raising property or income tax rates during a period of economic uncertainty.
Practically, many residents will still pay more.
Higher assessments, water and sewer rate increases, stormwater charges, waste fees, and the now-doubled 9-1-1 surcharge collectively create what some residents describe as “death by a thousand cuts.”
There were no widely reported surprise mega-fees beyond the 9-1-1 increase. The process was public, debated, and ultimately unanimous. But the distinction between a “tax increase” and a “fee adjustment” does little to comfort households whose monthly costs continue to climb.
What Residents Should Watch
Going forward, residents should pay attention to:
- Annual reviews of the 9-1-1 surcharge.
- Property assessment trends in the next triennial cycle.
- WSSC rate-setting decisions.
- Any renewed efforts to revisit income or supplemental education tax proposals.
- State-level budget decisions that may shift new obligations to counties.
Montgomery County’s FY26 budget reflects a careful political balance: maintain rates, fund priorities, protect reserves, and distribute cost increases through targeted fees and assessment growth.
Whether that balance is sustainable — or merely postpones harder fiscal choices — will become clearer in the years ahead.
For now, while there was no formal tax hike, many Montgomery County residents will still feel the impact in their monthly bills.
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