Georgetown, Del., May 18, 2010: Sussex County’s financial picture for the coming fiscal year looks solid, thanks to an economy slowly on the mend and County government’s continued emphasis on strict spending controls to keep costs in check.

County leaders on Tuesday, May 18, 2010, unveiled the proposed $139.8 million budget for next year, a plan that is up from the current year’s budget, but mostly because of an infusion of one-time federal ‘stimulus’ funds for capital projects, not day-to-day expenses. The proposal calls for no property tax increase and avoids employee layoffs and pay cuts, while funding 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. Mr. Baker 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 2010-2011 plan.

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 21 year without an increase. The average County tax bill for a single-family home remains at just over $100 annually. st

However, some increases in sewer rates, up to $15 annually, will occur as the County takes the first steps toward implementing a uniform service charge for the bulk of its 59,000 sewer customers. That annual charge, which now varies among the County’s 20 sewer districts, pays for operations and maintenance of the County’s sewer systems.

“The proposal for Fiscal 2011 is a baseline balanced budget,” Mr. Baker said. “Our challenge again has been to present a plan that allows the County to live within its reduced means, while continuing to provide the services that Sussex Countians expect. Our general fund revenues are 15 percent below two years, yet the expectations of our residents remain high.”

The new budget, just as its predecessor did, calls for limited spending in County government in the next year, with the general fund – the portion that pays for the day-to-day operations of County government – using no appropriated reserves.

However, some line items reduced last year are partially restored in the proposed budget as expected revenues in 2010-2011 are forecast to increase. Grants to local fire companies, local law enforcement and the Sussex Conservation District, for example, have been partially restored.

Meantime, economic development is a major focus of the proposed budget. Mr. Baker noted the County will embark on more than $35 million in sewer construction projects in the year ahead, thanks to federal ‘stimulus’ dollars that have kept those projects on track. Those projects alone stand to employ nearly 100 people as of July 1 and keep the local economy at work.

The proposed budget includes no layoffs or mandatory furloughs that governments elsewhere are considering. Also, no reductions in salary or working hours are proposed, and benefits such as dental and vision reimbursement, vacation, sick leave and holidays, as well as a zero-employee-contribution pension plan, will remain intact.

County Council will hold a public hearing on the proposal during its 10 a.m. meeting Tuesday, June 22, 2010, in council chambers at the County Administrative Offices building on The Circle in Georgetown. Council must adopt a budget by June 30.

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

“Sussex County is not out of the tunnel yet, so we must keep a watchful eye on our spending, weighing carefully each project and each request before us to ensure our most critical needs are met,” Mr. Baker said. “That is responsible budgeting, and that’s something on which the County government prides itself.”

The proposed total budget, which comprises the general fund, water and sewer, and the capital budget, is up from the 2010 budget by approximately $11.8 million, or 9.2 percent. Most of the increase is due to capital projects aided by ‘stimulus’ funds. General fund revenues and expenditures, however, are expected to increase by a modest $600,000, or 1.3 percent.

Budget writers this year had to again be mindful of leveling revenues from the real estate transfer tax – the 3 percent levy attached to most property sales, and split between the State and the County or town, depending on where a property is located. In the current year’s budget, the estimated revenue from realty transfer was $12.7 million. For Fiscal 2011, Sussex County expects to collect the same amount in realty transfer tax, representing no change.

“The economy-sensitive revenues, such as realty transfer tax, building permits, building inspections, and Recorder of Deeds fees, are at the same level as the previous year,” Ms. Webb. “We’re not losing any ground, and given the recent state of the economy in the last couple of years, not losing any ground is good news.”

County Council President Vance C. Phillips praised the budget team for furthering the Council’s vision of government that should be responsible and spend reasonably.

“It is comforting to know that our Sussex County government is able to work within its means, without raising taxes or cutting essential services,” Mr. Phillips said. “Once again, Sussex County taxpayers are the big winners in this budget.”

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A copy of the proposed Fiscal Year 2011 budget, as well as the accompanying budget letter, can be downloaded from the County’s website, at sussexcountyde.gov.