Sussex County budget plan up 7.3%, holds tax rate steady
A more than $285 million proposed 2026 budget introduced at Sussex County Council’s May 20 meeting would spend more money on farmland preservation, public safety and expansion of wastewater infrastructure.
The plan would increase spending by $20 million, or 7.3%, while holding the line on the tax rate, which was adjusted to compensate for the first countywide assessment update since 1974. The revaluation increased total assessments of the nearly 200,000 parcels in the county by 20 times.
The budget is heavily reliant on realty tax revenue, and declining sales in the past four years have prompted caution in projecting revenue, said County Administrator Todd Lawson in introducing the budget.
The portion of the annual budget funded by the tax has increased from less than 25% to nearly 40% in recent years. It is used for emergency services, economic development, assessment, public works and open space preservation.
The county budget spends 80% of the projected realty tax revenue to be cautious, Lawson said.
That tax pays 36% of the county budget, while property tax revenue pays 22%, nearly identical to the previous budget.
Finance Director Gina Jennings said 47% of the county’s nearly $103 million general fund revenues come from building-related sources, such as realty tax and building permits.
The budget total includes the general fund, capital projects, water and sewer funds, pension and American Rescue Plan Act expenditures.
Additional wastewater spending will fund two treatment plants, new service areas, increased capacity and other upgrades to the county utility systems.
Public safety expenses account for 44% of general fund budget expenditures, Jennings noted.
Much of the $19.4 million in increased spending in the budget resulted from one-time costs for upgrading and improving the county’s Inland Bays and Wolfe Neck Regional wastewater facilities, Lawson said.
The budget increases farmland preservation funding to $2 million, double the previous year, Jennings said. That increased the general fund budget hike from about 3%, close to the inflation rate, to the current 4.4%, she said.
Fee increases are proposed, including $12 annually for sewer and $33 annually for unmetered water on public utility systems, and a $3,000 increase to the $7,700 cost of sewer connections. There are also new and adjusted fees for the Sheriff’s, Geographic Information and Engineering offices.
Sewer connection fee hikes will help fund increased capacity and treatment plant improvements, Jennings said.
Overall, property tax revenue will increase by $614,000, or 3.2%, due to new construction, but the new tax rate keeps the county’s collection of taxes revenue neutral, according to the county.
Assessment updates will be a continuing expense, as the county set aside $1.7 million in the budget plan toward the projected $10 million cost of the next state-mandated revaluation in five years, Jennings said.
The county budget plan includes $2.4 million for the design, planning and construction of paramedic stations in the Dewey Beach, Lincoln and Milton areas.
Increased funding – from $4.6 million to $5.8 million – will pay for the county’s contract with the State of Delaware for 25 supplemental state police troopers assigned to Sussex County.
Council President Doug Hudson praised the budget team, including Lawson, Jennings, Deputy Finance Director Kathy Roth and Manager of Accounting Andrea Wall for developing the plan.
“That’s no easy feat, trying to satisfy a lot of competing interests, but this team always seems to pull it off,” Hudson said.
Council scheduled a public hearing on the budget proposal for 10 a.m., Tuesday, June 17, in council chambers at the County Administrative Offices building, 2 The Circle, Georgetown.
The public can comment on that date or submit comments online at budget@sussexcountyde.gov.
To view a copy of the proposed budget and accompanying budget presentation, go to sussexcountyde.gov/county-budget.
By law, the council must adopt a budget by June 30.
Kevin Conlon came to the Cape Gazette with nearly 40 years of newspaper experience since graduating from St. Bonaventure University in New York with a bachelor's degree in mass communication. He reports on Sussex County government and other assignments as needed.
His career spans working as a reporter and editor at daily newspapers in upstate New York, including The Daily Gazette in Schenectady. He comes to the Cape Gazette from the Cortland Standard, where he was an editor for more than 25 years, and in recent years also contributed as a columnist and opinion page writer. He and his staff won regional and state writing awards.
Conlon was relocating to Lewes when he came across an advertisement for a reporter job at the Cape Gazette, and the decision to pursue it paid off. His new position gives him an opportunity to stay in a career that he loves, covering local news for an independently owned newspaper.
Conlon is the father of seven children and grandfather to two young boys. In his spare time, he trains for and competes in triathlons and other races. Now settling into the Cape Region, he is searching out hilly trails and roads with wide shoulders. He is a fan of St. Bonaventure sports, especially rugby and basketball, as well as following the Mets, Steelers and Celtics.
