Sussex County Council accepts favorable 2006 financial report

Georgetown, Del., January 30, 2007: Sussex County’s finances, once again, are in tiptop shape, a new audit report shows.

Sussex County Council, at its Tuesday, Jan. 30, meeting, accepted the Audited Financial Statements for Fiscal 2006 from the accounting firm of Jefferson, Urian, Doane & Sterner, P.A., Certified Public Accountants. The auditors released an unqualified report noting that the financial statements “present fairly, in all material respects, the respective financial position” of Sussex County, Del., as of June 30, 2006.

During Fiscal Year 2006, Sussex County’s general fund experienced an excess of revenues over expenditures and other financing sources and uses of $10.9 million. This is the 16th consecutive year the County’s general fund has had a positive financial result. The undesignated fund balance represents a reasonable level of 23 percent of the budgeted general fund expenditures for FY 2007.

David B. Baker, Sussex County Administrator and previous County Finance Director, stated he is pleased with the report. “Additional revenue in years past allowed the County to move forward with various projects and programs,” Mr. Baker said. “During the last year, three new sewer districts went online, construction began on a new Emergency Operations Center and additional grants were made to the local volunteer fire companies.”

“But we must proceed with caution in the year to come,” Mr. Baker added. “The slowdown in the local real estate market requires fiscal caution on our part.”

Council President Dale R. Dukes also was pleased with the County’s financial report card for FY 2006. “Once again, we enter the year in the black and this is proof-positive the County is being run efficiently,” Mr. Dukes said. “I credit our staff with earning Sussex County another stellar report. They do an excellent job in managing the funds of the County and making sure all departments are on budget.”

Fiscal 2006

Financial Report Highlights

  • Sussex County maintains its AA bond rating by Standard & Poor’s, “reflecting consistently strong financial performance and management continuity;”
  • Sussex County continues its funding of non-sewer projects on a pay-as-you-go basis and avoids issuing debt;
  • Construction of a new Emergency Operations Center began in fiscal 2006;
  • A cumulative total of $4.7 million has been set aside for pensioner post-employment benefits;
  • The County funded 28 additional State Police in addition to the normal State allotment;
  • An eighth paramedic unit was placed in service, on a part-time basis, to be deployed during peak times and in areas when increased resources are needed due to high demand;
  • A new County Administration building is in the planning stages;
  • A building at the County’s Industrial Park was purchased and leased to PATS, LLC to improve employment opportunities within Sussex County;
  • A number of County sewer projects progressed, including:
    • Sea Country Estates Sewer – Project was completed and went online during fiscal 2006. It serves approximately 50 homes;
    • Oak Orchard Sewer – Project was completed and went online during fiscal 2006. It serves approximately 890 homes near Indian River Bay;
    • Bayview Estates Sewer – Project was completed and went online during fiscal 2006. It will serve approximately 243 properties;
    • South Coastal Regional Wastewater Treatment Facility continued with expansion during fiscal year 2006. This is a $22 million construction project and will expand the capacity by 3 million gallons per day;
  • Sewer and water hook-ups increased 7.6 percent, to 54,914 equivalent dwelling units (EDUs). Meantime:
    • $15.4 million in developer infrastructure contributions were received for sewer expansion;
    • Engineering planning and design work was underway for the Millville, South Ocean View and Miller Creek sewer projects.

Susan M. Webb, County Finance Director, said, “The County has been able to maintain healthy reserves while at the same time continuing to fund numerous grant programs, increase funding for public safety, and building infrastructure where needed. We’re proud of this.”

The County has received, the past four years, a Certificate of Achievement for Excellence in Financial Reporting, presented by the Government Finance Officers Association of the United States and Canada. This is the highest award a government can receive for financial reporting. Mrs. Webb said she is optimistic Sussex County will receive the same recognition for the FY 2006 audit report.

The complete report and other information is available on the County’s web site at sussexcountyde.gov.