Georgetown, Del., May 20, 2008: Sussex County leaders today rolled out the proposed $142 million budget for Fiscal Year 2009, a spending plan that will fund essential County services and meet public needs in spite of a changing economy and leaner revenues.

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 M. Jennings in proposing the 2008-2009 plan, titled “Balanced Progress.”

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 any sewer service rate increases other than for one-time connection fees for new customers.

Mr. Baker said the continuing downturn in the local housing market, along with rising energy prices, will affect the County’s revenue and subsequent spending in the next 12 months. But, Mr. Baker said, budget writers believe they have a fiscally conservative plan.

“We have a budget that meets ours and the public’s needs,” Mr. Baker said. “But this is a lean budget. We are maintaining services, but in order to do that, it means using appropriated reserves and meticulously going through and eliminating what could be eliminated. At the same time, we have looked for ways to better manage costs in the future, from healthcare to capital projects.”

“The difficulty always is in striking a balance to meet the needs of your constituency while recognizing that County government must operate within its means,” Mr. Baker added. “I believe we have done that.”

The proposed total budget is actually down from the current year’s budget by approximately $113,000, or .08 percent. County general fund revenues and expenditures have declined $3.1 million, or 5.4 percent.

County Council will hold a public hearing on the proposal during its 10 a.m. meeting Tuesday, June 17, 2008, 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.

Budget writers this year had to once again pay special attention to declining revenue 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 $22.4 million. For Fiscal 2009, Sussex County projects to collect $17.9 million in realty transfer tax, a 20 percent decrease.

Mr. Baker noted that of major concern this budget year is possible State legislation to reduce the local share of the realty transfer tax. If a change is made in the distribution formula, thereby reducing the County’s share, cuts would occur to various programs included in the proposed budget.

Among some of the highlights of the proposed Fiscal 2009 budget are:

• $39 million for capital sewer improvements, expansions of existing sewer districts and the addition of future districts;
• $23 million dedicated for public safety, representing no change from the Fiscal 2008 budget. The funding will pay for the County’s paramedic program, grants to local volunteer fire companies and town police forces, as well as cover the addition of four state troopers to the County’s complement under the Delaware State Police contract. Currently, Sussex County contracts for 36 additional troopers to be assigned to the county; under the 2009 budget, the complement would rise to 40 officers;
• $16.4 million for non-sewer capital improvements, including funding for a runway expansion at the Sussex County Airport and Industrial Park, a new communications equipment building to accompany the new Emergency Operations Center, and expansions at the South Coastal and Milton libraries;
• $750,000 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.

The proposed budget also calls for a 2 percent performance increase for County employees, and a 1 percent increase for County pensioners.

Mr. Baker said in addition to the annual budget, the County staff has prepared a five-year capital improvement plan totaling $277 million. That plan includes projects that are not necessarily part of the proposed budget, but are anticipated in future budget years.

Mrs. Webb said Sussex County, like other local governments and the State, was faced with tough budget decisions this year to save money – from cutting new equipment purchases to shifting employees from within to vacant positions.

“It’s our job each year to bring a balanced budget before the County Council, one they and the public can have confidence in,” Mrs. Webb said. “We had to make some hard choices this year, looking over the plan repeatedly for areas to trim back or hold off on spending. That is what we have in this proposed budget today.”

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A copy of the proposed Fiscal Year 2009 budget, as well as the accompanying budget letter, can be viewed or downloaded from the County’s website, at sussexcountyde.gov.