Sussex County unveils $142 million budget for Fiscal 2008

Georgetown, Del., May 22, 2007: Sussex County leaders today took the wraps off a $142 million proposed budget for Fiscal Year 2008, one that will see mild growth in County spending, but is more conservative in light of softening revenue from the local housing market.

County Administrator David B. Baker presented to County Council his first budget as the government’s new chief executive. Mr. Baker was joined by Finance Director Susan M. Webb, Budget and Cost Manager Kathy L. Roth and Accounting Division Director Gina M. Jennings in proposing the 2007-2008 spending plan, titled “A Balanced Approach.”

“This proposed budget is a fiscally sound plan,” Mr. Baker said. “It is sensible, practical and cautious, allowing County services to continue to meet the needs of the growing number of residents in Sussex County.”

The proposed budget is approximately $2 million more, or 1.4 percent, above the current year’s $140 million budget. The increase is smaller than the growth between the 2006 and 2007 budgets, when the increase was approximately 2.1 percent.

County Council will hold a public hearing on the proposal during its 10 a.m. meeting June 19, 2007, in council chambers at the County Administrative Offices building on The Circle in Georgetown. Council must adopt a budget before the start of the new fiscal year July 1.

Mr. Baker said the proposed budget keeps in place the county’s property tax rate of 44.5 cents per $100 of assessed value, and does not call for rate increases for about half of the County’s sewer customers. However, increases in rates for some customers are recommended to cover increased operational costs. Those increases range from less than 1 percent to approximately 8 percent.

Budget writers this year had to pay special attention to the declining revenue from the real estate transfer tax – the 3 percent levy attached to most property sales, and split between the County and the State. In the current year’s budget, the estimated revenue from realty transfer was $28.7 million. In Fiscal 2008, Sussex County projects to collect $22.4 million in realty transfer tax, a 22 percent decrease.

While the downturn means a decline in revenue, Sussex County has been preparing all along.

“Over the years, Sussex County has conservatively budgeted realty transfer tax revenue. That was especially important to do when the market was stronger,” Mr. Baker said. “That course of action has now helped us to weather the downturn we’re seeing in the local real estate market.”

The proposed budget includes, among other things:

  • $33 million for capital sewer improvements, expansions of existing sewer districts and the addition of future districts. The County has seen a 6 percent increase in the number of sewer connections between May 2006 and today. Similar growth is anticipated in Fiscal 2008, particularly with connections occurring in the new South Ocean View sewer project;
  • $23 million dedicated for public safety, an increase of 10 percent over the 2007 budget. That funding will pay for the County’s 119-member paramedic program, grants to local volunteer fire companies and town police forces, and cover the addition of four state troopers to the County’s complement under the Delaware State Police contract. Currently, Sussex County contracts for 32 additional troopers to be assigned to the county; under the 2008 budget, the complement would rise to 36 officers;
  • $10.5 million for non-sewer capital improvements, including $3.75 million for an additional administrative office building, $4.4 million for the construction of a second runway at the Sussex County Airport, and $376,000 for expansions at the Greenwood, South Coastal and Milton libraries;
  • $1.4 million to continue open space acquisition, in partnership with the non-profit Sussex County Land Trust and the Delaware Department of Agriculture. More than 3,000 acres have been preserved in Sussex County in recent years through those partnerships;
  • $150,000 for a records retention program. The County wants to establish a more coordinated effort in collecting and maintaining records and documents. The County plans to create a records retention facility at what will soon be the former Sussex County Emergency Operations Center outside Georgetown.

The proposed budget also calls for a 3 percent cost of living adjustment for County employees, continued funding of the County’s pension program and $276,000 in funding for dog control, which Delaware counties must now fund as a result of a state mandate.

Mr. Baker said in addition to the annual budget, the County staff has prepared an aggressive five-year capital improvement plan totaling $298 million. That plan includes projects that are not necessarily part of the proposed budget, but are anticipated in future spending plans.

Mrs. Webb said while some other jurisdictions are facing tough decisions in their budgets this year, Sussex County is fortunate enough to be able to take “a balanced approach.”

“The ultimate goal for us is to balance our budget and be within our means, regardless of the economy or how well the real estate market is doing,” Mrs. Webb added. “We believe this proposed budget does just that.”

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A copy of the proposed Fiscal Year 2008 budget, as well as the accompanying budget letter, can be viewed or downloaded from the County’s website, at sussexcountyde.gov.