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What only a few weeks ago appeared to be unfolding as a one-way trip to a property tax increase for Lewes homeowners has turned into a $3.6 million balanced budget for fiscal year 2008-09.
The mayor and council unanimously approved the $3,620,746 budget at a special meeting Tuesday, March 25, at the Lewes Public Library.
If turnout at the council’s final budget meeting could be viewed as a measure of residents’ concerns about a possible tax increase, then homeowner worries must be infinitesimally small.
Jim Gayhardt, a member of the Lewes Board of Public Works, was the only resident to attend the meeting.
Lewes Mayor Jim Ford said he and the council, by making several cuts in the budget, by shifting other expenses and by tapping into the city’s cash reserve fund, were able to hold a tax increase at bay – at least for fiscal year 2008-09.
“I think this is the right thing to do this year, but it might not be the right thing to do next year,” Ford said.
He said the city was facing a deficit of around $370,000. The panel’s decision to use $210,000 from the city’s cash reserve account – sometimes referred to as the rainy day fund – closed a substantial portion of the budget gap. As of February, the city’s cash reserve stood at about $3 million.
When faced with a budget shortfall last year for the current fiscal year, ending Monday, March 31, the mayor and council then also opted to tap the reserve cash account to make up a $380,000 deficit.
But Ford said through the course of the year the city looked for and found ways to make the budget leaner as well as ways to enhance revenue. As a result, cash from the reserve account was not used.
Ford said similar results could be achieved in the coming fiscal year. He said parking meter rate increases in the city’s business district could create some of the additional revenue. Ford said he has not heard resistance from business owners about a meter rate hike.
The mayor and council earlier approved an increase in parking meter rates at the city’s two beach parking lots. Ford said the city could also see a reduction in solid waste tipping fees as a result of a citywide recycling program, which would reduce the amount of waste going into the landfill.
He said the city would continue looking for revenue enhancement opportunities, and also take belt-tightening measures where possible.
With money from the cash reserve fund the deficit was reduced to $163,000.
Among the first items to be cut from the budget was a new cruiser for the police department.
Councilwoman Stephanie Tsantes said the police department has 13 officers and 12 vehicles of various types.
“It just seems to me to be a grossly excessive number of vehicles on inventory,” Tsantes said.
The council also cut about $25,000 from the budget’s anticipated fees for legal services, and shifted about $30,000 for a variety of parks and recreation improvement projects from the general obligation side of the ledger to the capital projects side.
A cut of up to $10,000 was also made in anticipated police department overtime.
Ford said the city, in anticipation of taking on a not- yet-determined amount of Board of Public Works general obligation debt, decided that if did assume any of the debt, payment would come from the fund, which would make it a capital expenditure.
But still lurking at some point ahead is the high probability of a property tax rate increase.
“Taxes are going to have to be raised – maybe not this year. Citizens would appreciate fair warning of an increase, with increases being gradual,” said Councilwoman Barbara Vaughan.
Contact Henry Evans at hevans@capegazette.com
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