Milton council weighs in on budget

Milton’s budget process for fiscal year 2022 has been a mostly uncontentious affair, with no tax increases planned and the town running a small surplus. 

Council will hold a public hearing at 6:30 p.m., Monday, Aug. 16, at Milton library, and could possibly vote on the budget then and there, although council could decide to wait and pass it in September. The budget must be approved before going into effect Friday, Oct. 1.

Town Manager Kristy Rogers told Milton council Aug. 2 that the town’s general fund will have an estimated $940 surplus. Revenues are projected at $3.349 million and expenses at $4.348 million; general fund revenues and expenses include those for the administrative, planning, parks, police and streets departments. 

Rogers said there are several planned fee increases. The first is the trash fee will go up from $58 to $61.50 per quarter, a planned increase which she said was part of the town’s contract with hauler Waste Industries. 

The town will also institute application fees for appeals to town council, board of appeals and board of adjustment. She said this year there have been two appeals, for which costs had been covered by the town. Rogers’ fee schedule proposes a $400 fee per appeal plus an initial deposit of $1,000 in escrow to cover the town’s administrative expenses in conducting the appeal. Those expenses include fees such as engineering and legal costs. At the end of the appeal, any remaining funds would be refunded to the applicant.

Rogers also proposed raising the building permit fee from $30 to $45, which she said would compensate for time spent by town staff reviewing the permit application. Building permits for temporary structures would also be $45. 

The fee schedule also calls for the establishment of two funds related to construction permits, which would replace community impact fees. The first is an emergency services fund, which would use 1/4 of 1 percent of construction value on any new building permit to assist with paying for emergency services such as police, fire and public works. 

The second fund is a community enhancement fund, which would use 3/4 of 1 percent of construction value on new building to assist with community enhancements such as parks, streets and sidewalks, stormwater, vehicles and equipment, and municipal facilities. 

Rogers said money from these funds would be restricted and not for use in the town’s general fund.

“They are not part of operations, they’re not part of salaries, they’re not personnel expenses but actual investments in town services,” she said.

Finally, Rogers said the town will increase the park usage fee for out-of-town groups wanting to use Milton Memorial Park. She said the fee will range from $50 to $150 depending on group size, but will not affect in-town Milton groups or nonprofits. 

“Our park attracts many people; it’s used for weddings, for birthdays, for memorial events, and those fees have not been changed for some time,” Rogers said.

While parks are not a big moneymaker for the town, she said, the use of them by large groups does require the time and work of town staff. 

Nearly half of the town’s revenue comes from property and real estate transfer taxes. Rogers has budgeted $230,000 in real estate transfer tax revenue, the same as fiscal year 2021. Rogers’ method has typically been to budget only what the town plans to spend in transfer tax revenue – which is restricted to capital expenses, public works services and infrastructure projects – so that projection does not reflect what the town would actually take in. She said the town is anticipating adding 47 new residential units during fiscal year 2022, which runs from Friday, Oct. 1, to Friday, Sept. 30, 2022. In Delaware, municipalities receive 1.5 percent of property sales as part of the state’s transfer tax. 

The majority of the town’s expenses, 72 percent combined, comes from streets and parks, and police. 

Rogers said the town’s utility fund, which includes the water department, and residential waste and recycling collection, is running a $25,000 surplus. She said technically, the surplus is $119,000, but subtracted from that is $94,000 in water-impact fees, which can only be used on water infrastructure maintenance. 

Among the capital improvement plans for fiscal year 2022 are a new police car, building repairs to the police station and town hall, drainage system and bulkhead improvements at the Magnolia Street parking lot, and water main upgrades on Atlantic Avenue, Atlantic Street and portions of Chestnut Street. The latter two projects have received state funding, with the $1.6 million water main project funded by a loan from the state Water Infrastructure Advisory Council and the Magnolia Street drainage project receiving $535,000 in grant funding. 

Royal Farms up for discussion

Besides the budget, the Aug. 16 meeting, set for 6:30 p.m. at Milton library, will include town council discussion of the proposed Royal Farms convenience store and gas station, which is planned for a 2-acre lot at the corner of Union Street Extended and Route 16. 

Council will also discuss a request from Fernmoor Homes to approve the final plat plan for Phase 1 of Heritage Creek. Finally, council will discuss and set a public hearing date on an ordinance to amend the town zoning code relating to appeals.