Georgetown, Del., Jan. 18, 2011: An independent audit of the 2010 budget year shows Sussex County has turned a corner and earned a small but important financial gain in the past year, erasing a three-year slide that tallied nearly $8 million in deficits compliments of the sluggish local and national economies.

Sussex County Council, at its Tuesday, Jan. 18, 2011, meeting, accepted the Audited Financial Statements for Fiscal Year 2010 from 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 as of June 30, 2010.

The audit report is presented annually to detail the County government’s finances in the previous fiscal year. The latest report shows Sussex County’s financial numbers are accurate and meet generally accepted accounting standards.

For Fiscal 2010, Sussex County ended the budget year with approximately $618,000 in revenues over expenditures, the first positive gain since slow home sales and the down economy, beginning in 2007, led to three years of deficits that totaled nearly $8 million.

“Given the sobering news of the past three annual audit reports, this is fantastic news,” County Finance Director Susan M. Webb said. “We are cautiously optimistic that brighter days are ahead, thanks in large part to our measured steps to curtail spending coupled with some glimmers of hope for a rebounding economy.”

The report shows the county is continuing its recovery from a slumping economy, particularly in the housing sector. One of the most significant sources of revenue for the County’s general fund in recent years, the realty transfer tax, has nearly leveled off, netting $13.1 million in Fiscal 2010, a decrease of $479,000, or 3.5 percent, from Fiscal 2009. The year prior, that line item had dropped by 35 percent.

Meantime, other related revenues, including fees collected through the Recorder of Deeds office, building permits and building inspections, also declined slightly, by a total of about $400,000, or 7 percent, from Fiscal 2009 to Fiscal 2010.

However, there were gains made elsewhere in the 2010 fiscal year, with foreclosures driving an increase of more than $425,000 in added revenue in sheriff’s sales, as well as additional property tax income, almost $300,000, thanks to new construction and stepped up delinquent tax collections. There was, however, no increase in the County’s property tax rate.

Those added revenues, along with decreases in budgeted expenditures in Fiscal 2010, helped keep the County on the positive side of the balance sheet.

County Administrator David B. Baker said the report reflects the continued hard work of County staff to maintain services with fewer resources. “General fund expenditures were $2.4 million less than the previous year. The County Council and staff deserve tremendous credit for providing County services with reduced staff and fewer funds,” Mr. Baker said. “Difficult choices were made reflecting the state of our economy, and this is the product of those efforts.”

Council President Michael H. Vincent said the audit should continue to give taxpayers confidence in the financial health of the County government and how their money is being managed locally.

“This Council has worked extremely hard in support of the staff to make the tough decisions to live within our income and still provide the required services for the residents of the county,” Council President Vincent said. “In these tough economic times this is good news that all of the efforts of the administration and staff have paid off with a small surplus at the end of a very tough year.”

Sussex County has submitted the 2010 audit report to the Government Finance Officers Association of the United States and Canada for consideration of its Certificate of Achievement for Excellence in Financial Reporting award. The County has received the award the past eight years. Ms. Webb said she is optimistic the County will receive the same recognition for the Fiscal 2010 audit report.

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

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