Officials say community not relying on ‘one-time dollars’ any longer

Delaware State News

CAMDEN — One mark of a successful individual or organization, Town Manager James O. Plumley says, "is when you notice corrections must be made, you make them."

And Camden has corrected its financial course.

Beginning with the annual town budget that took effect last month, Mr. Plumley said, Camden is funding its basic services almost entirely from relatively dependable sources such as property taxes and business licenses. Income from the volatile real estate and development industries, he said, no longer will be counted on to pay for many essentials.

"We’re divorcing ourselves from relying on the one-time dollars" that come with a construction project or a property sale, he said. "The key to success is living within your means. We have taken a strong stand on doing just that. No matter what the economy chooses to do, it won’t affect the day-to-day operation of the town of Camden any longer."

An economy riding atop the real estate bubble helped Camden garner annual revenues well in excess of $3 million a few years ago as new stores appeared on U.S. 13 and homes quickly popped up around town. But, with the bubble in smithereens, the budget for the current fiscal year is just $2 million.

Mr. Plumley said some $400,000 is expected by next June 30 from building permits and Delaware’s real estate transfer tax, but only $80,000 of that anticipated take has been budgeted. Any income from those levies that exceeds $80,000 will be saved for emergencies or used for extra payments on the $3 million mortgage on Camden’s 6-month-old, three-story town hall on Voshells Mill Road.

While property sales and construction fees once accounted for about 65 percent of the town’s budget, he said, they now equal just 4 percent. The other 96 percent comes from taxes and fees due every year.

"That pretty much assures all positions within the town are secure," he said. "We’re not basing our budget on what-ifs."

Mayor Robert A. Mooney said reaching this point has been "very exhausting." It has required sacrifices by many:

• The property tax rate rose from 95 cents per $100 of assessed value to $1.25. The owner of a home assessed at $53,000 — the town average, according to Mr. Plumley — will pay $662.50 this year, a $159 increase.

• Seven jobs with the town have been eliminated, leaving 19 full-time workers, some of whom have experienced pay cuts.

• The surviving employees are paying 15 percent of the premium on their health insurance, which the town previously covered in full.

• Mayor Mooney and Town Council members have forgone their $350 quarterly stipend in recent months.

Camden’s hardships hardly have been unique. The recession, especially in its effect on real estate and construction, has led to similar conditions in towns across Delaware.

Additionally, local governments have been left without their usual state funding to fix streets, which the General Assembly withheld this year as one of scores of cost-cutting measures. That cost Camden $77,000, the mayor said.

But the mayor said the worst may be over. "We’ve weathered the storm, I feel. We’re tickled to death with where we are."

The feared layoff of two police officers has been averted, he said, and — thanks to the new approach to using one-time revenue — the 40-year mortgage on Town Hall could be paid off some 30 years early.

The mortgage is Camden’s only debt, he said.

But Mayor Mooney may be most enthusiastic in discussing townspeople’s response to the economic downturn. When the town’s receptionist was laid off, resident Dave Fry organized a crew of volunteers to replace her. "You couldn’t find a more dedicated group of citizens anywhere," the mayor said.

Additional help comes from youths in a summer work program run by Jobs for Delaware Graduates and from adults required by judges to perform community service. The mayor also pitches in.

When it snowed heavily last winter, Mayor Mooney said, he joined town workers in clearing streets. "I drove a vehicle and Mr. Plumley was out there lending a hand. The bottom line was to get the job done."

The mayor is a retired state trooper who returned to active Air Force duty and reached the rank of lieutenant colonel. He has been mayor since 2004, winning another two-year term last year without opposition.

Mr. Plumley became town manager in May, following several months of performing the job while serving as vice mayor. A longtime member of council and the town planning commission, he is an architect and has run a roofing company.

His predecessor as town manager was laid off early this year.