Sussex County council receives positive 2005 financial report

Georgetown, Del., February 28, 2006: Sussex County’s finances continue to remain in good standing, a new report shows.

The accounting firm of Jefferson, Urian, Doane & Sterner, P.A., Certified Public Accountants, today presented the Audited Financial Statements for Fiscal 2005 to the Sussex County Council. The auditors released an unqualified report noting that the financial statements “present fairly, in all material respects, the respective financial position” of Sussex County, Delaware, as of June 30, 2005.

During Fiscal Year 2005, Sussex County’s General Fund experienced an excess of revenues over expenditures and other financing sources and uses of $11,803,708. This is the 15th consecutive year the County’s General Fund has had a positive financial result. The undesignated fund balance represents a reasonable level of 25 percent of the budgeted General Fund expenditures for FY 2006.

Robert Stickels, Sussex County Administrator, stated he is pleased with the report. “The $11.8 million will be beneficial in allowing the County Council to invest in programs to benefit Sussex County taxpayers,” Mr. Stickels said. “This reserve will help cover electric costs increasing at over 50 percent, gasoline at over $2 per gallon, and other major needs to serve County residents. The County plans to fund dredging of the Nanticoke River to enable the continuation of business in the Seaford and Blades area. Funds are needed for a new Emergency Operations Center due to County growth to better serve County residents with more space for our 9-1-1 system. The Budget Committee is recommending 12 programs to receive funding from the FY ’05 excess revenue.”

“With the volatility of today’s economy, it is very important that we have a cushion of funding to fall back on,” Mr. Stickels. “No one would want to have a personal checking account that had a zero-balance.”

The proposed programs to be funded by the available funds include library expansion projects for Greenwood and South Coastal libraries, additional funding for the purchase of open space and farmland preservation easements, funding for the County’s pensioner benefit fund, and additional State Police troopers to serve in Sussex County. Also, we are recommending funding for sewer project grants, expansion at the County Airport in Georgetown, and funding for a new Engineering Department Office Building.

Fiscal 2005 Financial Report Highlights

  • County AA bond rating by Standard & Poor’s was maintained, “reflecting consistently strong financial performance and management continuity”.
  • County non-sewer and water debt maintained at zero level – capital improvements funded on a pay-as-you-go basis.
  • Cumulative total of $2,767,000 was set aside for pensioner post-employment benefits.
  • Revenues from real estate transfers and new construction were strong. Per the U. S. Census Bureau, the value of new housing construction in Sussex County exceeded that for the individual states of Rhode Island, South Dakota, the District of Columbia, and Alaska for 2005, as of November 30, 2005.
  • Sewer and water hookups increased 6.8 percent to 51,054 EDUs.
  • The County funded 24 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 times and in areas when increased resources are needed due to high demand.
  • County funding for the Volunteer Fire Service increased by 45 percent to $3,795,016. Design continued for a new Emergency Operations Center to provide additional space for the County’s 9-1-1 Call Center.
  • A building at the County’s Industrial Park was purchased and leased to PATS, LLC to improve employment opportunities in Sussex County.
  • The County funded four new t-hangars at the County Airport, a new Airport perimeter security fence, and continued negotiating and purchasing property needed to extend an Airport runway. This infrastructure will enable growth for businesses and employers at the Airport.
  • Agriculture continued to be a major industry in Sussex County. Sussex ranks first among all United States counties in poultry and egg sales. Sussex ranks 36th in the United States for total market value of agriculture products sold, 29th for number of vegetable acres harvested, and 263rd for value of crops. Over 3,000 counties were included in this U. S. Department of Agriculture survey.
  • Sewer Projects
    • Cedar Neck Sewer – final project completion occurred during Fiscal 2005; serving approximately 1,300 customers near the Indian River Bay.
    • Oak Orchard Sewer – construction is underway to serve approximately 890 homes, also near Indian River Bay.
    • $12,483,000 in developer infrastructure contributions received for sewer expansion.
    • Construction continued on the new Bayview Estates and Sea Country Estates Sewer Districts, which will serve approximately 223 new users.
    • South Coastal Regional Wastewater Facility - $3.6 million sludge handling project was completed providing an improved sludge product that can be used to fertilize lawns, renovate fields, etc. Also, a $15.2 million construction project began to expand the plant capacity from 6 million gallons per day to 9 million gallons per day.
  • - Engineering planning and design work was underway for the Millville, South Ocean View, and Miller Creek sewer projects.
  • General Fund revenue exceeded expenditures and other financing sources and uses by $11,803,708.

David Baker, County Finance Director, said, “The Fiscal 2005 audit results reflect revenues received from growth in the real estate market, which will be needed to fund services and infrastructure for our growing population. The County’s 5-year plan reflects these needs.” The County received a Certificate of Achievement for Excellence in Financial Reporting, presented by the Government Finance Officers Association of the United States and Canada, for its previous Fiscal 2002, 2003 and 2004 reports. This is the highest award a government can receive for financial reporting. Mr. Baker stated he is optimistic that the County will receive the same recognition for this FY 2005 audit report.

County Council President Lynn J. Rogers stated, “The attractiveness of Sussex County as a place to live has brought increased revenues, but also results in additional expenditures to provide for the growing population. The County is planning funding for services and infrastructure for this growth. I would like to thank the County Administrator, County Finance Director, and County staff for their hard work in preparing this financial report and for the day-to-day hard work needed to maintain County government finances and a strong financial position.”

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