Georgetown, Del., May 17, 2011: Sussex County’s finances for the coming year are looking a bit brighter than those of the recent past, but County leaders will continue to depend on cautious budgeting to navigate through what remains a fragile and fluid economy.

County leaders on Tuesday, May 17, 2011, unveiled the proposed $139.2 million budget for next fiscal year, an overall plan that is down slightly from the current year’s budget, but largely follows its predecessor in terms of projected revenue and expected costs. The proposal calls for no property tax increase – it even reduces from $3 per person to zero the capitation tax – and avoids employee layoffs or pay cuts, while continuing to fund important public services such as paramedics, sewers, libraries and land use.

County Administrator David B. Baker presented to County Council the proposed budget for the new fiscal year that begins July 1, his last budget as County Administrator. Mr. Baker, who plans to retire later this year after a 33-year career in County government, was joined by Finance Director Susan M. Webb, Budget and Cost Manager Kathy L. Roth and Accounting Division Director Gina A. Jennings in proposing the 2011-2012 plan.

“This proposed budget stays the course of the past few years, keeping spending under control while maintaining the quality services we provide to the public,” Mr. Baker said. “There is improvement, though, including a slight increase in expected real estate revenue. That’s a positive sign, one that we hope will continue in the future.”

The proposed total budget keeps in place the County’s property tax rate of 44.5 cents per $100 of assessed value, making this the 22nd consecutive year without an increase. The average County tax bill for a single-family home remains at just over $100 annually.

However, some increases in sewer rates, ranging from $8 to $15 annually, depending on the district, will occur as the County continues its efforts to implement uniform service charges for the bulk of its more than 64,000 sewer customers. That annual charge, which has varied among the County’s nearly two dozen sewer districts, pays for operations and maintenance of the public sewer systems, and the increases are necessary to keep pace with those costs.

Among the rates included in the proposed budget are those for new sewer systems in the Angola and Johnson’s Corner areas. Estimated bills for properties within those new districts – both are expected to begin service this summer – will be 22 percent and 25 percent lower, respectively, than originally estimated in 2007 referendums. Thanks to federal ‘stimulus’ dollars the County aggressively pursued, existing homeowners within those new districts will enjoy lower annual rates, and will not have to pay one-time connection charges of more than $3,000.

The proposed budget continues the County’s trend of limiting spending, with the general fund, which pays for the government’s day-to-day operations, using no appropriated reserves. Meantime, grants that had been diminished in recent years, most notably funding to the County’s volunteer fire service, are either maintained at their current levels or partially restored. Fire service grants are up 10 percent, but still below funding levels five years earlier.

The proposed budget includes a small cost of living adjustment for employees, 2 percent, the first such increase in three years. Additionally, the proposed budget calls for no layoffs, furloughs, or salary reductions that governments elsewhere have instituted. Benefits such as dental and vision reimbursement, vacation, sick leave and holidays, as well as a zero-employee- contribution pension plan, remain intact.

The coming budget year’s signs of progress notwithstanding, the County will continue to look for savings by reducing purchases, limiting new hires, cross-training employees and curtailing travel when possible.

“The economy still has not rebounded, so the County, just like any other business or household, remains limited in what it has to work with,” Finance Director Webb said. “This budget reflects the continued economic realities we all face.”

The proposed total budget, which comprises the general fund, water and sewer, and capital budgets, is down slightly from the 2010-2011 plan, by approximately $700,000, or one-half of one percent. Most of the overall decrease is the result of fewer capital projects – some included in the current budget and funded by one-time federal ‘stimulus’ dollars have been completed or will be complete before the end of this fiscal year – as well as a reduction in other federal funding for initiatives such as the Neighborhood Stabilization Program.

The general fund portion of the budget, however, is expected to increase $1.1 million, or 2.4 percent. That increase will be fueled by an expected $870,000 bump in realty transfer tax revenue during the 2011-2012 budget year, the first measurable gain in that revenue source in the last few years. For Fiscal 2012, Sussex County expects to collect $13.6 million in realty transfer tax revenue, a 7 percent increase over the current year’s budget.

County Council President Michael H. Vincent praised budget writers, and especially the retiring Mr. Baker, for their continued work to ensure Sussex County remains financially stable and fiscally responsible.

“I am proud of what this group has been able to accomplish this year, and each and every year before this,” Mr. Vincent said. “Even when the economy is as bleak as it has been for the past couple of years, it is reassuring to know that this County government can find a way to live and work within its means.”

County Council will hold a public hearing on the proposal during its 10 a.m. meeting Tuesday, June 14, 2011, in council chambers at the County Administrative Offices building, 2 The Circle, in Georgetown. The public can comment in person on that date, or submit comments through the web at budget@sussexcountyde.gov. By law, Council must adopt a budget by June 30.

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A copy of the proposed Fiscal Year 2012 budget, as well as the accompanying budget letter, can be downloaded from the County’s website at sussexcountyde.gov.