Sussex County budget reflects strong economy

Sussex County is growing, and the county's proposed $177 million fiscal year 2019 budget shows it, with an overall increase of $34 million from this year.

All of the county's key building-related revenue sources have shown increases over the past three years. Building-related revenue is up nearly $3 million from last year.

Realty transfer tax revenue has increased every year since 2011, from $14.3 million to anticipated revenue of $30.2 million in 2018.

Sussex Finance Director Gina Jennings said while the county budgets only 85 percent of the anticipated realty tax revenue for fiscal year 2019, she estimates the total will top the 2018 amount by about $2 million.

Building permits, building code inspections, and planning and zoning revenue are up an average of 33 percent over the past three years.

The overall $177 million budget contains $74 million in the general fund budget, a $5.4 million increase from the previous fiscal year, and $17 million in the general fund capital projects budget.

The increase in the general fund is driven by a $3.6 million increase in grant-in-aid funding, nearly $1 million increases in paramedic and emergency preparedness operations, and $900,000 more to county public safety agencies.

"This budget does a lot of heavy lifting to fund our general day-to-day costs, but it makes serious long-term investments for Sussex County's future," said County Administrator Todd Lawson, who presented the proposed budget during council's May 22 meeting. "Our community and our economy are growing, and we must continue to do all that we can to meet the needs so Sussex County remains as attractive and competitive as it is today."

There is no change in current property tax rates or building permit fees; however, water and sewer fees will each increase approximately $6 annually.

The average tax bill for a single-family home in the county is $800, with about $114 of that in county property taxes. The majority of that bill is school taxes. The county has not had a property tax increase for more than two decades.

The county plans to use more than $14 million in reserve funds, including a $10 million contribution to the pension fund, $1 million for land preservation and $1.5 million for a sports foundation loan.

Public safety continues to be a big-ticket item for the county. The budget includes $16 million for paramedics, $3 million for additional Delaware State Police troopers, $4.3 million for local fire and ambulance services, $3.6 million to the Sussex 911 center and $575,000 for local police departments.

More than $22 million in realty transfer taxes are used to fund public safety services.

Nearly $40 million has been budgeted for key wastewater infrastructure projects including $21 million for the Rehoboth Beach outfall and treatment plant improvements.

Another $1.2 million has been budgeted for the county's continuing plan to expand broadband to rural areas, and $8.5 million has been set aside for work at the airport and new business park.

Wastewater projects in design or construction totaling $36 million will add more than 1,500 new connections to various county sewer districts; another 455 connections are awaiting funding.

Lawson said the county continues its policy of pay as you go by doing capital projects with grants, realty transfer taxes and reserves so that no debt is incurred.

There are nine new positions included in the budget, but with a loss of four existing positions, the net is five positions, said Lawson. The county is seeking to hire a building code clerk, two dispatchers, one staff member for the bookmobile, land-use planner, register of wills clerk, two utility construction technicians and an electrician.

The budget contains a 2 percent cost-of-living increase and merit increases based on performance. The county has 515 employees, an increase of nine over the past seven years.

The county has also budgeted an additional $500,000 for county ambulance services to help ease financial burdens expressed by ambulance officials.

Included in the budget is $1.25 million for a new paramedic station near Seaford and $250,000 in design funds for a new public safety building to house paramedics offices and the emergency operations center in one location.

County council will hold a public hearing on the budget at 10 a.m., Tuesday, June 19, in the county administrative offices building, 2 The Circle, Georgetown. The public can comment in person or submit comments at budget@sussexcountyde.gov. Council must adopt a budget by Saturday, June 30.

To view a copy of the proposed budget, as well as the accompanying budget presentation, go to www.sussexcountyde.gov/county-budget.