Levy Court also OKs employee pay cut

Delaware State News

DOVER — Kent County Levy Court stuck to its plan for coping with the recession.

Commissioners voted Tuesday night to raise taxes, take a bigger bite from county workers’ checks and adopt a $22 million general operating budget that maintains a variety of cost-cutting measures undertaken last year after county revenues plummeted amid a severe downtown in real-estate sales and construction.

Levy Court’s decisions were not unexpected. They had been informally endorsed by a majority of commissioners. But a property-tax increase and the general budget won approval with bare-majority, 4-3 votes as Commissioner Richard E. Ennis joined outspoken tax-hike foes Allan F. Angel and Eric L. Buckson in opposition.

"People out there are hurting," Commissioner Ennis said, arguing homeowners should be spared higher taxes while sufficient funds remain in reserve to ensure a balanced budget. "Now is not the time to implement a tax increase for those type of individuals. They’ve helped us build those reserve funds. Now we’re going to tax them for helping us."

But others said drawing more from reserves could leave the county vulnerable if the General Assembly imposes greater financial burdens on counties, the economy does not recover in the next year or a catastrophe occurs.

Nearly $1 million in reserves will be transferred to the general fund.

Another $1.9 million is to come from the property-tax hike, which will cost the average homeowner an estimated $28 annually. The first increase in the county property-tax rate in more than a decade, it moves the levy from the current 25 cents per $100 in assessed value to 31 cents per $100.

Kent still will have one of the lower property tax rates in the East.

Tuesday’s decision does not affect school taxes, which are collected by the county but set by individual school districts.

For county employees, already facing a wage freeze, the fiscal year that starts July 1 will bring an additional 1-percent deduction from their paychecks to help pay for their pensions. Currently, they do not contribute toward their defined-benefit retirement plan.

That change was approved on a 6-1 vote, with Commissioner Angel dissenting. He said he would prefer to save on retirement costs by lengthening the period an employee must be on the job before becoming eligible for a pension. The currently required period is five years. A majority of commissioners last week balked at moving it to eight years.

Approved weeks ago were increases in the amount employees will pay for prescription drugs and dental care.

The county will maintain a number of spending limitations already in effect, such as reducing energy consumption and the use of county motor vehicles. It is to save further from the retirement of at least 24 veteran employees who accepted offers that boost their pensions.

Leaving some of their jobs vacant and filling the remaining jobs with lower-paid personnel will save the county an estimated $552,000 next year.

Levy Court’s newest member, Commissioner George "Jody" Sweeney, expressed dismay at the financial situation, but noted that other governments in Delaware — from the state to the city of Dover — also are looking at new ways of balancing budgets.

"As a freshman commissioner, I detest the fact I am supporting a tax increase," he said.

But supporters of the increase expressed hope that a tax reduction will be feasible next year.