|
Dave Baker knew he faced a rough road as he set out to complete his first budget as county administrator.
The county budget team had to balance diminishing realty transfer tax revenue with an increasing population, while maintaining the same level of services.
The total proposed budget for 2008 weighed in at $142 million, $2 million or 1.4 percent more than the 2007 budget of $140 million. For the past two budgets, the rate of increase for the budget was between 2.1 and 2.6 percent, meaning the county is tightening its belt this year.
In the 2007 budget, about 37 percent, or $28.7 million, of the county’s funds came from the transfer tax. In the 2008 budget, presented Tuesday, May 22, that number has decreased by 22 percent to $22.4 million, which provides for 32 percent of the proposed budget.
The transfer tax is down more than one-third since its peak of more than $36 million in 2005.
“The transfer tax could be more than we anticipate,” said Baker about the declining revenue stream. “We are trying to conservatively budget. This budget is sensible, practical and cautious, allowing county services to continue to meet the needs of the growing number of residents in Sussex County.”
The transfer tax – a 3 percent charge attached to most property sales – is split between the county and the state, but even that process could be facing changes, said Baker. Legislation has been proposed to change the way the transfer tax revenue is distributed. While the county currently enjoys half of the revenue, that number could be reduced to zero, if House Bill 111 passes, said Sussex County Council President Dale Dukes.
“If this legislation passes, the state would collect the entire 3 percent of the realty transfer tax,” said Dukes. “This would result in a loss of almost $9 million in revenue to the county.”
Even with declining revenue, Baker announced that residents will not experience a property tax hike. The rate of 44.5 cents per $100 of assessed value will remain the same. The majority of sewer customers will see only minimal increases, but higher costs can be expected for those in Henlopen Acres near Rehoboth Beach.
Big ticket items
Finance Director Susan Webb detailed the changes in the large expenditures, showing that $14 million, the largest chunk, would go to county paramedics services. Other large expenditures include capital improvements and grant-in-aid programs, the latter getting $11 million next year.
Capital sewer improvements, including sewer district expansions, account for $33 million of the proposed budget. The county has seen a 6 percent increase in the number of sewer connections between May 2006 and today. Growth is expected to continue and this summer there will be two public hearings on expansions in the Angola area and Johnson’s Corner.
Last year, the county put $19 million toward nonsewer and water capital projects. This year that number has decreased to just over $10 million. About $5 million of that money will go toward improvements at the Sussex County Airport and industrial park, while $750,000 is for roof repairs and $376,000 is for library expansions. The libraries are experiencing an especially hard budget season because of falling revenues. In 2008, the county hopes to complete a second floor at the Milton Library, finish expansion of the South Coastal Library and build a new building for the Greenwood Library.
“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,” said Webb. “We believe this proposed budget does just that.”
Accounting Director Gina Jennings said county employees can expect a cost of living increase of 3 percent. Last year, employees received an increase of 3.5 percent and a $500 across-the-board bonus. No bonus was mentioned this year for the county’s 500 employees.
Sussex County Councilman George Cole said the county could save money by reducing the benefits package given to the employees. The county benefits package is a lot better than benefits offered through many other governmental bodies, said Cole.
He said the more the county grows and the more employees needed to run county offices, the more of a drain it is on county resources.
“We have the Cadillac version of benefits,” said Cole. “We could save money by reducing benefits. It wouldn’t have to affect the current employees, only the new ones.”
Cole suggested setting it up so new employees would only be fully vested in a benefits plan after 8 years.
But, Webb said the reason the benefits package is so good for county employees is because the salaries are not as high as in the private sector. She said the benefits are an important part of employee retention.
Eleven county employees are eligible for retirement, including Director of Planning and Zoning Lawrence Lank, who has been with the county for 37 years. By 2009, seven more employees will be eligible for retirement, including Baker, who is eligible starting in April 2008.
Increased staff will be needed as the county continues to grow, said Baker. In last year’s budget, former County Administrator Bob Stickels rolled out a plan to build a new administrative building in Georgetown. The 2007 budget set aside $7.5 million for the 40,000 square-foot building. The 2008 budget set aside $3.8 million to cover all administration building costs, and while the project has not been eliminated, it will take longer to fund than originally thought, said Baker. In 2006, Stickels said the costs would be spread out from 2007 to 2009, but now it looks like it might extend into 2012.
Help for housing
The county will remain devoted to housing programs, said Baker. Money will continue to be funneled into the moderately priced housing program, the emergency housing repair assistance program and affordable housing programs.
This year, the county set aside $100,000 for emergency housing repairs for low-moderate income families. The budget also calls for $10,000 to help the First State Community Action Agency with a project in Cool Spring.
The West Rehoboth Community Land Trust was budgeted to receive $5,000 to continue efforts to provide affordable housing in the community.
Habitat for Humanity, which was not in the 2007 budget, could receive $25,000 in the 2008 budget, and the Interfaith Mission, also new this year, could receive $10,000.
Mable Granke of the West Rehoboth Community Land Trust (WRCLT) said she was glad the group was included in the budget, but that they will need to look for more money.
“We were hoping for more because we are on the verge of being able to go forward,” said Granke. The WRCLT received approval earlier this year to build two duplexes in West Rehoboth to provide affordable housing. “We are lucky to still be getting money and we are grateful for the consideration.”
New to the budget
In the proposed budget this year, county officials had to set aside $276,000 for dog control. It is a state mandate that the county Sussex
Continued from page 16
pay for half of the services provided by the SPCA, said Baker.
Also new this year is money set aside for a records retention program. The county is putting $150,000 toward a program to establish a more coordinated effort in maintaining records and documents. The money will also help pay for storage space at the old emergency operations center, which will be vacated this fall as the employees move into the new $12 million operations center.
Baker thanked his budget team, which included Webb, Roth, Jennings, another Susan Webb in county administration and Eddie Sparpaglione, director of information systems, among many other county employees that helped move the process along.
A public hearing on the proposed budget will be held at 10 a.m., Tuesday, June 19, in council chambers in Georgetown. The public is welcome to attend. The entire budget can be found at www.sussexcountyde.gov.
Contact Rachel Swick at: rswick@capegazette.com
|
