Lewes council passes budget amid coronavirus concerns

Lewes Mayor and City Council held an emergency meeting March 13 to discuss the city’s response to the coronavirus pandemic. They also had to vote on the fiscal year 2021 budget, which goes into effect Wednesday, April 1.

“Although we’re shutting down meetings, the city has to go on,” said Mayor Ted Becker.

The budget does not include any major increases to property taxes, licenses, fees or parking meters. The $6.3 million budget is about $100,000 more than the amended 2020 budget and about $280,000 more than the originally approved 2020 budget.

Councilwoman Bonnie Osler, treasurer, described the budget as responsible. However, she said, the city has to keep an eye on the ongoing COVID-19 situation and how it will affect city business.

“It’s remarkable how quiet the town is right now,” she said.

City Manager Ann Marie Townshend said the city has a healthy reserve in its transfer tax fund, so if home buying slows due to the outbreak, she said, the city should still be in good shape.

What she is concerned about is revenue from parking and gross rental receipts tax if people are still being asked to stay home this summer.

“If come June, July and August we’re all still staying home, then people aren’t going to the beach or going downtown, and they’re not eating at restaurants,” she said. “That’s bad for our local economy for sure, but it also will hit our budget.”

Deputy Mayor Fred Beaufait recommended city staff delay new expenditures until they have a better handle on how the coronavirus affects city finances.

“There may be some things we don’t have to do immediately,” he said. “I would simply look to [the city manager] to make that decision in terms of what can be postponed.”

Among projects in the 2021 budget is the replacement of lighting in both public beach parking lots, about $90,000, paid for by municipal street-aid funds. The city also plans to undertake a $150,000 renovation project for the city’s police department, and rebuild the city’s tennis, basketball and pickleball courts for about $73,000. The annual street improvement project is estimated at $316,000, which includes Coleman Avenue and East Fourth Street along with several crosswalks and improvements to DeVries Alley and Bethel Alley. 

Other major purchases include a front-end loader for $150,000, a beach rake for $57,000, a one-ton dump truck for $56,000 and a utility terrain vehicle for $20,000.

The budget includes funds for a new assistant building official and the reclassification of a laborer position to a foreman for facilities management. 

To view the approved budget, go to lewes.civicweb.net and look for mayor and city council’s March 13 agenda, where a link to the budget is provided.