The Echo

Released: 5/25/2010


New Castle County Council approved a budget Tuesday night that contains no property tax increase and tightly controls new spending in the next fiscal year, County Executive Chris Coons announced.

The total operating budget for Fiscal Year 2011 is $235.5 million, which reflects a 2.9 percent increase from the current year’s budget of $228.9 million. The additional $6.6 million in fixed costs comes from rising expenses in employee and retiree healthcare, step merit increases, debt service, pension contribution, electricity rates and the county’s wastewater treatment contract with the city of Wilmington.

The new budget also includes a 4 percent sewer rate increase and an 18 percent light tax increase. The money generated from the sewer rate increase will pay for wastewater treatment with Wilmington and ongoing improvements to the system needed to meet stricter federal guidelines. The light tax increase is needed because of a rise in rates from Delmarva Power, and it will be paid only by residents and business owners who voluntarily incur the light tax.

The $73.5 million approved capital budget will push forward projects that will spur job growth and provide residents with much-needed projects, ranging from library improvements to sewer rehabilitation. The county is using federal stimulus bond money to recoup 45 percent of the interest on $51 million worth of debt service on these projects.

“This is a budget that we can afford,” Coons said Tuesday. “We are continuing to do the hard work to get our deficit under control so this government can live within its means. It’s important to pursue budget discipline through good times and bad. Like the constituents we serve, we have to live within our means.”

The budget cuts personnel costs by continuing a 5 percent salary rollback for all employees. Coons planned to begin layoffs after three AFSCME unions initially rejected the rollbacks. However, union leaders and the administration negotiated over the past two months to reach a resolution that avoids layoffs and saves $2.1 million. The total saved from all rollbacks is $4.3 million.

Chief Administrative Officer Rick Gregory, who led the negotiations, said he was pleased at the positive outcome.

“It is imperative that we cut our personnel costs, but laying off employees was the last thing we wanted to do,” he said. “I really want to thank the union leaders and their membership for continuing to sacrifice.”

Council unanimously approved the sewer rate hike, capital budget and operating budget.

“While this budget sets the course for next year, it represents several years of effort to reduce costs while continuing core services,” Council President Paul Clark said. “The tough decisions made over the last couple of years have sustained our AAA bond rating and kept taxes low while continuing to provide citizens with quality services.”

The new fiscal year begins July 1.