After more than two months of deliberations, New Castle County Council quietly approved a $228 million operating budget and 25 percent tax increase Tuesday night. That’s a decrease from the 2009 fiscal year operating budget of $240 million.
The average resident's annual tax bill will jump about $100, but actual increases vary based on each home's assessed value. Tax rates are also different for those living in municipalities, who may rely on the town rather than the county for some services.
Apparently all talked out, the 13-member body voted 10-3 to approve the spending plan for the upcoming fiscal year, which begins July 1. The vote on the tax increase was 8-5.
The budget approved by council is virtually unchanged from what County Executive Chris Coons proposed presented to council in his March 17 budget address - balancing $23 million in spending cuts with the tax increase expected to generate $21.2 million in revenue.
The average annual tax bill will jump $100, to $501, following the increase, which is the second highest in the government's history. The cuts, meanwhile, represent the largest budget-to-budget reduction in county history, officials said.
Several council members, like William Bell (D-Middletown), said they carefully scrutinized the budget and were convinced the county cut all it could without impacting core services.
"The vast majority of citizens we come in contact with have a high regard for the services we provide - especially police, paramedics and 911," Bell said.
But Councilman William Tansey (R-Greenville), who ultimately voted in favor of the budget and tax increase, said council shouldn't give itself too much credit.
"It's all rhetoric," said Tansey. "All we did was go after the low hanging fruit. We taxed the taxpayer to recover what we're spending."
In reality though, its sagging revenues that have exacerbated the county's financial woes. Projected at $32 million at the outset of fiscal year 2009, real estate transfer tax revenues are only expected to reach $16 million now that the housing market has become so stagnant. Things aren't expected to improve over the next 12 months.
Of the cuts, nearly $5 million is to be achieved through salary cuts. More than 900 employees agreed to 5 percent salary rollbacks and the administration said it was nearing a contract agreement with Fraternal Order Police that would secure similar savings among its 365 police officers. Nine paramedics - all of whom were in training and not active in the field - were laid off.
