Henlopen Acres approves $1.38 million budget

During a meeting June 13, Henlopen Acres commissioners approved a budget of about $1.38 million for the fiscal year beginning Tuesday, July 1. The amount represents about an 11.3% increase on the current fiscal year’s budget of $1.24 million.

Town Manager Anna Fagan, who has been with the town since October, presented commissioners with a $1.42 million budget that had a $192,000 deficit. She said the primary drivers for the increase include wage increases and related expenses, healthcare costs and an increased budget for building inspection, plan review and code compliance review services provided by the town’s consultant AECOM.

Commissioners balanced the budget in a variety of ways – the removal a code enforcement officer at a cost of $36,000; an increase in the construction fee for projects over $50,000 from 2.75% to 3.5%; and a change in the property tax, which in Henlopen Acres is based on 50% of assessed value.

Fagan said due to the recent Sussex County reassessment, the property tax rate will go from $3.50 per $100 of assessed value down to to $0.18 per $100 of value. However, she said, tax revenue will be greater because assessed home values are now significantly higher.

During the meeting, Mayor Joni Reich said the change in property taxes will add about $2,650 to the tax bill for the average home.

The capital improvement budget for next year is about $360,000. Most of the funding is being put toward maintenance at the town’s marina and water plant. Fagan said work at the marina includes dredging, replacing dock boards and renovating the bathrooms. At the water plant, the town will complete cybersecurity upgrades and replace some bladder tanks that are reaching the end of their useful life, she said.

For the second straight year, there were changes to the business license fees. The license fee for a small business remains $50, but the definition of a small business was cut in half, from up to 10 employees down to five. The fee for large businesses, now six or more employees, increased from $125 to $175. The fee for businesses using trucks over 26,000 pounds went from $225 to $275.

As for the current fiscal year, Fagan said revenues are looking good. Revenues from both construction fees and transfer taxes are projected to be higher than anticipated at year end, she said.

Tree removal moratorium 

Commissioners continued to discuss possible changes to town code related to the removal of canopy trees on private property. No decisions were made, but a moratorium on severely cutting back, topping, damaging or removing canopy trees in the setback areas of residential lots was extended through the end of September.

The removal of the town’s canopy trees because of new construction has been an issue for years. However, town officials began to explore the possibility of imposing stricter tree-removal codes a few months ago. Commissioners approved the moratorium during a meeting May 12, and then conducted a public hearing May 23 on the proposed changes.

The proposed tree-protection areas in the setbacks of every lot would be the first 10 feet beyond the town right of way in the front yard and the entire 20-foot setback of both side yards and the rear yard. There would be an allowance of 5 feet around the buildable area to provide for construction or renovation of a dwelling.

In addition, the town would require a tree-removal permit, with approval based on criteria such as poor condition of a tree or imminent risk. Residents who remove a canopy tree will be required to plant a new one if new density standards aren’t met, and there would be a $2,500 fine assessed for the removal of protected trees without town approval.

At the June 13 meeting, commissioners were split on how to move forward – implement new rules that affect new construction and existing property owners who may seek additions to their homes, or new rules that primarily affect only new construction. There were proposals that would allow existing homeowners to remove one or two shade trees every one or two years, but commissioners in favor of imposing the rules as proposed said that would still allow the removal of shade trees, just at a slower rate.

Ultimately, no decisions were made. Commissioners are expected to resume discussions and make a decision at a meeting later this summer.